Rio de Janeiro. Around 13 billion litres of fuel are sold irregularly in Brazil every year, according to estimates by the main distributor Vibra Energia in partnership with the consultancy firm McKinsey.
Tax losses from fuel sold irregularly amount to about 14 billion reais ($2.48 billion) a year, according to figures presented by Vibra to investors on Thursday.
In 2023, Brazil will sell some 149.5 billion liters of fuel, according to data from regulator ANP. Vibra did not specify whether the 13 billion are part of that total, nor did it detail how it arrived at the figure.
The company’s comments come as authorities blame Brazil’s largest criminal gang, the Primeiro Comando da Capital – commonly known as PCC – for setting fires on sugarcane plantations in retaliation for measures to combat illegal trade in adulterated fuels.
“The problem has reached a new level (…) it is a problem for the country, there are governors, ministers who talk about this issue,” said Vibra CEO Ernesto Pousada.
Pousada said the company has opened offices to deal with the issue and is lobbying for changes to Brazilian laws to make it more difficult for fuel distributors to evade taxes.
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– 2024-08-31 16:07:31
