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End of loyalty to the flag at fuel stations defended by the ANP promises to end the cartel, stimulate competition and lower the price of gasoline, which has been suffering consecutive shots
On this day (7/7), the ANP held a Public Hearing No. 07/2021, referring to the draft resolution that changes the regulatory framework for the retail fuel resale activity in Brazil. The agency's idea is to end loyalty to the brand at gas stations and authorize the sale of fuel via delivery. The new measure promises to stimulate competition and the price of a liter of gasoline could be up to 50 cents cheaper and ease the pockets of Brazilians.
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The event was held by videoconference, with live broadcast on the ANP YouTube channel. The revision proposal also has the objective of reducing the burden of economic agents that operate in the fuel market, enabling innovation from new ways of acting, streamlining the offer by promoting new business arrangements, as well as revising and simplifying rules which have become disproportionate, without neglecting the protection of consumer interests.
Among the topics addressed are: regulatory protection of loyalty to the flag; refueling outside facilities authorized for resale; event of cancellation of operating authorization due to removal of interdiction seal; and how prices are displayed on the panel and metering pumps.
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See more information about the proposal on this link. Also access the Public Consultation and Hearing page # 07 / 2021:
Loyalty to the gasoline brand would become a consumer's choice, and not a regulatory obligation that today gives the ANP the role of overseeing private contracts.
According to the agency, the objective is to “enable innovation based on new forms of action, streamline the offer by promoting new business arrangements, as well as revising and simplifying rules that have become disproportionate, without neglecting the defense of the interests of shareholders. consumers”.
The easing of the “regulatory protection of loyalty to the flag” refers to the obligation, for service stations that have chosen to display the trademark of a fuel distributor, to only acquire, store and sell fuel supplied by that distributor.
ANP defends the end of loyalty to the flag at fuel stations and delivery service
National Agency of Petroleum, Gas and Biofuels defends the commercialization of different brands in the same gas station, making the “regulatory protection of loyalty to the flag” more flexible.
In addition, the Agency wants a new way of acting in resale, which allows delivery outside the gas station facilities, through the delivery service. The draft resolution will be submitted for public consultation and hearing.
Among the aforementioned proposals, the ANP also defends the elimination of the use of the third decimal place in fuel price lists. The objective, according to the agency, is to bring greater clarity in the presentation of prices to Brazilians.
New measure could reduce the price of gasoline by up to 50 cents
The Government believes that the measure will stimulate competition between brands and could reduce the price of gasoline by up to R$ 0,50 per liter. However, there are distributors who oppose the measure, claiming that they invest in gas stations and that the measure would benefit companies that operate irregularly, whether by evading taxes or selling poor-quality products.
The delivery system for delivering gasoline outside the station's facilities, which has already been tested in Rio de Janeiro by GOfit, is also causing controversy.
Gofit's service works via a mobile application, following the example of food delivery services such as Rappi and Uber Eats: after registering, an adapted vehicle takes the fuel from the gas station to the requested address.
This service, which is already provided in other countries, where competition benefits the consumer, is not seen with good eyes by distributors and gas stations in Brazil. They allege that the operations may pose a risk to the supply if they do not respect safety rules.
Direct sale of ethanol from plants is approved by the CCJ and promises to stimulate competition and curb the increase in gasoline prices at gas stations
It was approved, on May 5, by the Constitution and Justice Commission (CCJ) of the Chamber of Deputies, the permission for the direct sale of ethanol from the plants – without going through the distributors, to the gas stations. The new measure can curb the increase in the price of gasoline and diesel, and ease the pockets of Brazilians.
It is still not possible to know exactly how much impact the direct sale of ethanol would generate on the price of biofuel in Brazil, since there is a lot of dependence on industrial logistics in each state. However, a study by Esalq-Log, in 2019, showed that the average cost of transporting ethanol in the state of São Paulo would drop by around 30% with direct sales.
There are also estimates that the concentration of production and distribution margins in the producer and increased competition between mill owners and distributors in the supply of fuel in the market could reduce prices of hydrous ethanol for the final consumer by up to 20 cents per liter.
“The big gain is the appreciation of renewable fuel. It will be more competitive compared to fossil fuel, gasoline, and it will be more appetizing for the consumer to fill up”, points out Sévero.
