Oil: States and municipalities will have drop in revenue

Before the crisis generated by the coronavirus pandemic, expected to distribute the amount of R$ 33.4 billion in oil royalties. However, with the price of oil in estimate has now fallen to R$ 18.4 billion. The data are from the Agency National Petroleum, Natural Gas and Biofuels (ANP).

With global demand falling, the price of a barrel has plummeted more and more. The price of WTI oil came into the negative for the first time, in the -$37 trench. Also according to the ANP, the the price of the liter of oil in the Lula field, for example, recorded a drop in 42.6% since the beginning of the year – from R$ 1.57 to R$ 0.90.

In the state of Rio alone, the projection of the loss of revenue is almost R$ 5 billion. Another example is the city of Maricá, the largest oil royalty collector in the country, which will have postponement of works that would be touched with the proceeds of the collection.

Finally, according to Décio Oddone, former director general of ANP, those who receive oil royalties need to be prepared for the moments of falling. "All the revenue stemming from oil and gas extraction is volatile, because prices and the exchange rate fluctuate. It's finite too, because the resources run out. No there is a curse of oil: what there is is mismanagement, which must be avoided." And in the current crisis, the trend is that this drop in price will last for a long time.