Distributor goes to STF for R$0.30 subsidy on diesel granted to Petrobras

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The subsidy that the government granted to Petrobras in exchange for reducing the price of diesel violated the principle of free competition, as it created a competitive advantage for the state-owned company. On this basis, Brasil China Importadora e Distribuidora (BCI) filed a writ of mandamus with the Federal Supreme Court to request a subsidy from the Union of R$0.30 per liter of fuel, which was granted to Petrobras.


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Truck drivers went on strike due to a decrease in the price of diesel oil.
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To comply with the agreement made with B2B Lead truck drivers to reduce R$0.46 per liter of diesel, President Michel Temer issued three provisional measures reducing taxes, which will result in a drop of R$0.16. A subsidy program for Petrobras guarantees R$0.30 less in the value of each liter. The price will be frozen for 60 days.

But BCI considered that the measure allows Petrobras an excessive competitive advantage. In the MS filed by lawyer Braz Florentino Paes de Andrade Filho , from Amaral, Paes de Andrade, Perez, Figueirêdo Advogados, the company states that, as the state-owned company will be able to sell diesel oil for R$ 2.0316 without incurring losses — since the The Union will bear the difference of R$0.30 per liter —, “the entire market” will purchase the company’s product.

“There will therefore be a market capture by Petrobrás, funded by public coffers, in a clear affront to free competition”, claimed the company, mentioning the principle of article 170 of the Constitution.



Furthermore, BCI pointed out that article 36 of Law 12,529/2011 prohibits the granting of the benefit only to Petrobras. The provision establishes that acts that, in any way, harm free enterprise or free competition are an infringement of the economic order.

Therefore, the company requested an injunction to ensure that it is also entitled to a subsidy of R$0.30 per liter of diesel oil.