Impact of Petrobras' price policy change on the brazilian economy:
An analysis of the import parity price (ppi) and its implications.
DOI:
https://doi.org/10.12660/rbt.v3n2.2023.90359Keywords:
Inflation, supply shocks, commodity prices, Petrobras' price policy, Transportation sectorAbstract
This study examines the impacts on Brazilian inflation of the Petrobras price policy adopted in 2017, more specifically the transition to the Import Parity Price (IPP) policy in response to abrupt changes in West Texas Intermediate (WTI) crude oil prices. Using the Vector Autoregression Model (VAR), it is observed that the Petrobras price policy and the IPP, played significant roles in transferring oil price fluctuations to inflation.
Prior to the IPP, government interventions strove to curb inflation, with positive impacts on inflation after its adoption. The findings highlight the relevance of reevaluating the Petrobras price policy in 2023 in order to safeguard the company's interests and underpin the nation’s economic stability. This study contributes to discussions on fuel policies in Brazil and how significantly they affect the transport sector.
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