Note published on the official website of the Government of the State of São Paulo, 25/02/2005

By Carlos Prado

The difference between the price of anhydrous alcohol, which is mixed with gasoline sold at gas stations, and hydrated alcohol, which is used directly as fuel in cars, has dropped from 18% to 11% in the last two months. The reason: the measures to combat crimes of tax evasion and adulteration of fuels implemented by the São Paulo Government.

The statement was made by Governor Geraldo Alckmin on the afternoon of Friday, the 26th, during a meeting with representatives of the National Union of Fuel and Lubricant Distribution Companies (Sindicom) and with the president of the Brazilian Institute of Ethical Competition (ETCO), Emerson Kapaz.

"This drop means that anhydrous alcohol is left over, that is, the stations are not mixing more than 25% of the fuel with gasoline," said the governor. He also said that in addition to this, there are stations that have closed and distributors that have given collective holidays to their employees.

The inspection is a joint work of the departments of Finance and Public Security, the Public Ministry, Technological Research Institute (IPT), Institute of Weights and Measures (Ipem) and the National Petroleum Agency (ANP).

Cassation

Alckmin is optimistic about the bill that will be voted on next Tuesday, 1st, at the Legislative Assembly. According to the proposal, the company that buys or resells fuels outside the standards defined by law will have their state registration revoked, being prevented from functioning. Today the Congress of Assembly committees approved amendments to the bill, which is ready for a vote in plenary. "It is an important step towards approval," said the governor.

He also informed that next week another bill will be sent to the Assembly. The new text will determine that the post caught selling adulterated products will lose the right over the fuel.

The vice-president of Sindicom stressed the importance of the São Paulo Government's initiative and evaluated the first results. 'We feel a very strong retraction in the market with the absence of unrealistic fuel prices. The consumer has learned that too cheap gasoline is not good, but an indicator of tampering. ' He also informed that the union will assign a fuel quality control vehicle to Ipem.

Special diet

The special regime granted by the Government of Rio de Janeiro to the distributors, which exempts the payment of ICMS when the fuel leaves the refinery was severely criticized by the governor.
According to him, there was always a tax substitution, that is, when the tax was exited the tax was already collected on the spot.

'This measure in Rio means that some distributors do not pay at the refinery or at the gas station, that is, everyone loses with this, as it is an explicit tax evasion that generates a great loss'.