Current model concentrates royalties in the main producing states: RJ, SP and ES; rule that expands transfers was suspended in 2013
The Federal Supreme Court (STF) begins this Wednesday (6) a trial with a billion-dollar impact that may change the current oil royalty distribution model. At stake is the law that expanded royalty transfers to non-producing entitiesin 2012. The norm was suspended the following year by injunction from minister Cármen Lúcia. The issue has been awaiting judgment by the plenary since then.
As the rule is suspended, the model that concentrates royalties in the main producing states: Rio de Janeiro, São Paulo e Holy Spirit. These entities claim that resuming the validity of the law would cause billions in losses to state public accounts.
The other states defend the law and argue that the current model generates a historical distortion, with a breakdown of equality between entities.
If the 2012 law comes into force, the percentage of royalties distributed to producing states and municipalities would fall from 61% to 26%. The Special Fund, intended for all other non-producing states and municipalities, will rise from 8.75% to 54%. The percentage passed on to the Union, which is currently 30% of total royalties, would fall to 20%.
In 2025, the Oil production yielded R$62.2 billion in royaltiesaccording to data released by the National Petroleum, Natural Gas and Biofuels Agency (ANP). From January to December, the Union received R$24.5 billion; the states, R$16.6 billion; and municipalities, R$21.1 billion.
The amount transferred to non-producing states and municipalities, through the Special Fund, was R$5.2 billion in the same period. The value originates from the portion allocated to the Union.
The actions scheduled for this Wednesday were filed by Rio de Janeiro and Espírito Santo. The trial begins with oral arguments from the parties and dozens of interested entities. Votes, therefore, must only be cast on Thursday (7).
