The board of directors of Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) approved, on January 13, 2022, the scheduling of a public consultation and hearing on the draft resolution to review Ordinance No. 26/1992 (Ordinance) of the now-defunct National Department of Fuels (DNC).

According to the Superintendence of Supply Inspection (SFI), the Ordinance is the oldest standard still in effect within the legislation applicable to inspecting the national fuel supply. Although the Ordinance represented a breakthrough at the time of its publication, today it is outdated. 

The Ordinance instituted the Fuel Movement Book (LMC), which aimed to have retail service stations record each day their supply, purchase and sale of fuel. In this way, retail fuel dealers are obliged to fill out the LMC manually. However, the current reality offers more modern methods such as several software programs available in the market, that could offer more efficient reporting.

The draft resolution aims to update the Ordinance, giving greater clarity and precision without altering its essence and merit. In addition, the draft resolution provides the requirements for completing the LMC, and offers the option to fill it out either in an electronic or handwritten manner. 

Finally, the draft resolution retains aspects of the current Ordinance, such as the following obligations: (i) daily registry in the LMC, (ii) investigation of the causes in cases of loss of physical fuel stock greater than 0.6% and (iii) the LMC being kept at the retail service station, at the disposal of the relevant authorities for inspection.

Visit us at Tauil & Chequer

Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

© Copyright 2020. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.