Author: Luís Nassif *

Source: Araraquara.com - Araraquara / SP - ECONOMY - 16/07/2010

After a struggle of years, it has apparently managed to reach a reasonably regulated fuel market. Much due to the collaborative work between the ANP (National Petroleum Agency), state Finance Departments - especially the São Palo - and industry associations.

After a struggle of years, it has apparently managed to reach a reasonably regulated fuel market. Much due to the collaborative work between the ANP (National Petroleum Agency), state Finance Departments - especially the São Palo - and industry associations.

Nowadays, in São Paulo fuel compliance rates are in the range of 2%. Years ago they reached 19% - against an average (high) of 12%.

After the deregulation of the sector, there were three waves of irregularities.

The first was the injunctions for non-payment of taxes. The Revenue and the State Treasury defined the tax substitution regime - by which the distributors would pay taxes in advance, when purchasing fuel from refineries. Armed with court injunctions, phantom distributors purchased the fuel without paying the tax in advance. Then they disappeared into the dust without paying off tax liabilities.

The second wave of counterfeiting was with the mixture of solvents in gasoline. A certainty was needed about solvent importers. The third stage was the evasion in anhydrous alcohol, increasing the mixture in gasoline. Reduction was achieved by forcing mills to color alcohol.

Nowadays, hiding is greater in LPG (liquefied petroleum gas). About 20% of consumption is illegal, from backyard distributors.

According to Sindigás estimates, today there are 70 thousand points of sale in the country. But the ANP has only 36 thousand authorized ones.
In many cases, small grocery stores sold gas, due to lack of information about the activity. Campaign in conjunction with Sindigás: indexes plummeted.

This situation was more serious in regions beyond the control of formal authority - as in some favelas in Rio. When the UPPs (Pacifying Police Units) freed Rio's favelas from traffic control - cases of Cantagalo, Pavão and Pavãozinho - it was possible take the legal gas trade there, which allowed the price of the cylinder to be reduced from 50 to 40 reais for the favela population.

Although currently under control, it is a market that requires constant inspection.

In many cases, changing economic conditions have helped to regularize. Before the flex era, for example, the price differential favored an increase in the mixture of alcohol in gasoline.

The ANP even found stations with 95% alcohol in the mixture. And with world-class adulteration technology. Within 30 seconds, offenders were able to change the mixing valve, triggering the cell phone.

The big challenge for regulation now is to define compliance items for biofuels that are accepted internationally. This certification will be important to allow the international product market to expand.

And then there are environmental and labor issues, the fight against deforestation and slave labor. With these points, the internationalization process of biofuels will be facilitated.

Blog: www.luisnassif.com.br