1. Home
  2. / Economy
  3. / Petrobras states that there is no intention to reduce or increase its fuels, so as not to harm the internal oil market
reading time 4 min read

Petrobras states that there is no intention to reduce or increase its fuels, so as not to harm the internal oil market

Written by Roberta Souza
Published 28/02/2022 às 22:37
petroleum, Petrobras, fuels
Photo: Reproduction Google Images (via Agência Brasil – EBC website)

Even in the face of global tension that affects the price of oil and its derivative fuels, Petrobras intends to continue with its values ​​policy

The value of oil faced a strong instability in the last week, after the Russian invasion in the Ukrainian territory. On February 23, on Wednesday, the price of a barrel of Brent oil managed to exceed US$ 105, but ended up falling again. On Friday, 25/02, its price ended at US$ 94,12, taking into account the predictions that the decisions of Western allies to Russia would preserve the country's energy and fuel sector. However, everything related to the geopolitical issue between the two European countries is still very uncertain, except what Petrobras' decision appears to be.

Read also

According to information disclosed by the newspaper O Estado de S. Paulo, the instability of oil prices should also affect the value of fuels in Brazil, but Petrobras claims that this should not affect the decision to keep its prices linked to those of the foreign market. The state-owned company's justification is that, if it does not follow the quotations for oil and derived fuels, the national and fuel market and the internal supply may be harmed in the future, considering the statement by Cláudio Mastella, director of Commercialization and Logistics of the state-owned company, held in a conference call with analysts in order to detail last year's record profit.

Petrobras uses the Import Parity Price (PPI) to establish any readjustment in fuel prices at its refineries. As a result of this policy, internal values ​​should rise in line with the increase in oil prices and its derivatives in the most important global trading markets, such as the Gulf of Mexico, in the USA, and London, for example.

To beyond the commodity, Petrobras' calculation also takes into account the exchange rate and the costs of importing. This is due to the fact that the main competitors in the oil market are currently the importers, and Petrobras' goal is to keep its prices similar to theirs.

In fact, the price of a barrel of oil has been rising for some time, due to the tensions caused by the threats of invasion by the Russian government of Vladimir Putin. However, the values ​​established by Petrobras in Brazil have remained the same since January 12 of this year. The company's positioning is quite complicated, since the permanence of the PPI and the consequences on internal prices generate a bad repercussion among consumers and directly affect the intention of the president of Brazil, Jair Bolsonaro, to be re-elected in the elections that will take place in October 2022.

“We have observed rising prices in recent weeks and, at the same time, the dollar has been devaluing. With these two movements, in contrast, we were able to maintain our prices (unchanged)”, said the Commercialization and Logistics director, adding that barrel volatility was greater and Petrobras was analyzing the oil market scenario to study possible readjustments. .

Mastella's opinion is that, even with international tensions, Petrobras is competitive and remains aligned with the world market, while avoiding transmitting price inconsistencies to consumers.

One of the reasons why Petrobras maintains the PPI is its interest in bringing investors closer to the refineries that are up for sale. The fear is that, if it corresponds to Bolsonaro's request for the freezing of fuel prices in order to reduce inflation, it could scare away companies with potential interest in business, and there is no intention of being part of an action administered by the Government.

Watch the following video that explains a little more about the price of one of Petrobras' fuels, diesel oil: diesel price Petrobras.

Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

Share across apps