Mar 18 • 12:40 UTC 🇧🇷 Brazil G1 (PT)

Lula calls on Federal Police against diesel price increases concerned about negative reflections in the election year

President Luiz Inácio Lula da Silva has initiated investigations into alleged illegal practices in the diesel fuel sector amid rising prices and inflation concerns ahead of elections.

In response to significant increases in diesel prices, which are causing inflationary pressure in an election year, Brazilian President Luiz Inácio Lula da Silva has taken action by involving the Federal Police and the National Consumer Secretariat. This move follows government intelligence reports suggesting the possible formation of a cartel among diesel distributors, who may be manipulating prices through old fuel stocks.

Officials have noted that while fuel prices are determined by market forces, any agreement to artificially raise diesel prices constitutes illegal cartel behavior and is considered a crime against consumers. The investigations will focus on identifying whether these practices are happening at distribution levels or among fuel station networks, significantly impacting transportation costs and consumer prices.

Aside from the investigations, the government is also working to ensure a minimum freight price for truck drivers, who are particularly affected by the rising fuel rates amid global oil price surges attributed to geopolitical conflicts, thereby safeguarding their financial stability and ensuring the transportation industry can continue to operate effectively.

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