June 26, 2022
Petrobras' decision could increase diesel prices, says Abicom

Petrobras’ decision could increase diesel prices, says Abicom

resolution Petrobras Continuing to refuse fuel sales orders to distributors should directly affect the price of diesel, precisely because of the difference between the value exercised in the Brazilian market and abroad. Forecasts from the Brazilian Association of Fuel Importers, APICOM.

The entity expects that the amount paid for gasoline at service stations can also be affected, but in the case of diesel, the difference between the product sold by Petrobras and imported is greater, making the result more tangible at service stations across the country.

“Diesel delays remain significant, averaging 22 cents per liter, and due to the fact that Petrobras does not accept 100% of orders from distributors, distributors will be required to purchase the imported product at a higher price than purchases from Petrobras, as a result of higher Prices are at the pumps,” says Abicom President, Sergio Araujo.

Practically speaking, the decision was already anticipated by distributors as it repeats the same move as in November. The CNN The company questioned the implications for the price of diesel – and alternatives to mitigate the price hike – but still no return. Regarding the decision not to meet all orders from distributors, Petrobras says in a note: “Like in November, diesel orders sent by distributors for December were atypical and above the expected market for this period. After assessing availability, taking into account our production and supply capacity The accepted volume was less than the orders received.”

They themselves point out that “there are dozens of companies registered with the National Ports Agency that are able to import fuel and are able to meet this additional demand”, pointing to the path that would make diesel at the pump more expensive. However, they claim that there is no news of a shortage and that “the quantities available to each customer follow the current regulations set by the National Ports Agency and have been applied to diesel and gasoline.” The memo also notes that state-owned refineries have a “utilization factor of close to 87%,” meaning they are operating at 87% of their maximum capacity.

diesel x inflation

Economists view diesel as an important component in calculating inflation in the country. The logistical basis for the distribution of Brazilian products is wheeled transport and diesel is the fuel used by the trucks.

In expert analysis I heard before CNNProducts with low added value or more likely to end up with freight costs are the most affected by higher fuel prices. Such is the case for fruits and vegetables, eggs and vegetables that leave rural areas and arrive in major cities on trucks. It is precisely for this reason that they argue that diesel helps “spread” inflation, because although it is not a fuel used by the population, it ends up interfering with the prices of a large part of Brazilian retail.