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Brazil watchdog CADE lays out plan to raise competition on fuel market


By Reuters

Petroleumworld 05 30 2018

Brazil's antitrust regulator on Tuesday laid out a plan to increase competition in the fuels market, adding to debate on a recent spike in fuel prices that triggered a week-long truckers' strike in Latin America's largest economy.

In a study, the economic department of the Cade regulator and its technical body laid out nine measures that it says could boost competition in a sector widely that has often been accused with collusion.

The proposal includes changes to the tax code and the regulatory framework, such as lifting a ban on direct sales of ethanol from producers to gas stations, allowing refineries and distributors to own gas stations and distributors to import fuels.

The study comes as truckers slowly unwind nationwide protests that gridlocked roads and cut supplies to key sectors after the government agreed to subsidize diesel prices and cut taxes to curb prices.

Cade's board will meet later on Tuesday to discuss potential actions related to the fuel crisis.


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Reporting by Bruno Federowski Editing by Nick Zieminski from Reuters 05 29 2018

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