Lula government cuts paralyze fuel quality monitoring, says ANP

The board of directors of the National Agency of Petroleum, Natural Gas and Biofuels (ANP) has decided to temporarily suspend, starting July 1, 2025, the Fuel Quality Monitoring Program (PMQC), responsible for monitoring the compliance and safety of what is sold at Brazilian gas stations. In addition, the Fuel Price Survey (LPC), which provides consumers with weekly information on prices charged in hundreds of municipalities, will also have its scope reduced.

The measures are a direct result of budget cuts imposed by the government of President Luiz Inácio Lula da Silva (PT). At the end of May, the Presidency blocked R$7.1 million and earmarked another R$27.7 million from the ANP's budget. As a result, the amount available for the agency's discretionary expenses in 2025 fell from R$140.6 million to R$105.7 million.

In an official statement, the ANP acknowledged that the budget crisis is not new. In values ​​updated by the IPCA, the amount authorized for discretionary expenses fell 82% in just over a decade — from R$749 million in 2013 to just R$134 million in 2024.

Faced with the lack of resources, the ANP announced a series of emergency actions:

• Suspension of PMQC for 30 days (July 1st to 31st);
• Reduction of the LPC sample, with the survey reaching a maximum of 390 municipalities in the 2nd half of 2025 for automotive fuels (459 were expected), and 175 for LPG prices;
• Cut spending on tickets and daily allowances;
• Reduction of resources for inspection actions;
• Remote holding of meetings, public hearings and institutional events.

The board also stated that it is trying to negotiate budget adjustments with the federal government to ensure the continuity of its operations in 2025.

Meanwhile, the impact of the suspension of the PMQC and the reduction of the LPC could be felt directly by consumers, who will temporarily be left without effective monitoring of the quality of fuels sold in the country and with less transparency regarding prices charged at the pumps.