With 50-day delay, Petrobras re-adjusts diesel price on Monday 5/09

Photo by Eric MacLean / Source: Pexels

Petrobras’ previous diesel price adjustment came into effect on 03/11, approximately one month prior to this latest change.

The diesel, which sells for an average of R$ 6.63 at gas stations in Brazil, is outdated for 50 days, according to the Brazilian Association of Fuel Importers. This fact makes industry representatives, diesel importers, fuel distributors and shareholders expect a new diesel price adjustment at any time.

According to the CNN Brasil website, the latest diesel price has been readjusted by Petrobras It entered into force on March 11 of that year, a week after the amendment made in fuel valueThe value of the fuel was already outdated in view of the international market. The adjustment to the price of diesel was 25%, however, the price of diesel abroad continued to rise. Currently, the amount transferred by Petrobras is 21% behind the rate charged abroad, a difference of about R$1.27.

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Petrobras CEO confirms his influence on the sector

At a conference held last Friday (5), Jose Mauro Coelho, President of Petrobras, said that the sector of this fuel has been affected. In his statement, he said, “Petrobras is clearly not insensitive to the Brazilian people, especially in atypical moments like the one we are going through, where the conflict in Eastern Europe ends with a significant damage to the energy markets, especially at this moment, the diesel market.”

He went on to say that Petrobras is concerned about this delay in the price of diesel, as it continues to follow the price adjustments in the market, but does not pass the amendment immediately. “But, of course, adjustments have to be made at a certain point so that we can maintain the financial position of our company,” Coelho said.

Furthermore, although diesel average lag is 21%, in Ports of Suape (PE)and Santos (SP), Itaqui (MA) and Araucária (PR), this lag index has already reached 25%, according to the association. In some regions, the price of diesel in Brazil has already fallen by 1.51 R$.
The fuel is currently transported to distributors for R$4.51 per liter, and before reaching the service stations, the diesel is mixed with one part biodiesel for every nine parts of the oil.
However, at the pump, the price of diesel ends up at a higher price even without an increase on the part of the oil company, the price is already rising at the stations, as a result of general inflation in Brazil. The average selling price of diesel, according to a weekly survey by the National Petroleum Agency (ANP), is R$ 6.63, but in Porto Seguro, Bahia, the ANP has found that diesel is already being passed at R$8,387 per liter.

Despite the price adjustment, the spread is up to 11%.

Despite the 8.86% adjustment in the price of diesel, announced by Petrobras on Monday, 09 December, the delay in diesel prices is still up to 11%, according to a calculation by Abicom (the Brazilian Association of Fuel Importers). In a statement, the entity said that if the exchange rate and prices of gasoline and fuel on the international market stabilize at a high level, the delay in fuel prices will be far from the level, rendering import operations unfeasible.
Before the diesel price adjustment, the average lag for fuel was 17% and for gasoline 19%. Despite the high exchange rate and prices of gasoline and diesel in the overseas market, the average prices of gasoline and diesel operate with negative spreads in all the ports surveyed.