Oil Royalty Revenue Expected to Reach R$ 61 Billion in 2022 with Increased Production and Fuel Prices, Says ANP

Written by Ruth Rodrigues

Published on 09/06/2022 at 18:00

Foto: Pixabay

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After a Significant Growth During the First Quarter of the Year, ANP Projects Oil Royalties Revenue of Around R$ 61 Billion for 2022, Driven by Rising Fuel Prices Due to Increased Production

The Director-General of the National Petroleum Agency (ANP), Rodolfo Saboia, released some data about the oil and gas sector at a workshop on Wednesday, (06/08), for this year, and commented on the current scenario regarding fuel prices. Thus, the agency believes that the revenue from oil royalties will benefit from the price increase resulting from the growth in production, and that the amount should reach R$ 61 billion just this year.

First Quarter of 2022 Saw a 30% Increase in Oil Royalties Revenue and Numbers Are Expected to Keep Growing Until the End of the Year

The national oil and gas market is facing a moment of high instability regarding productivity and the charges on fuels. This is happening as the geopolitical conflicts in Europe are impacting the Brazilian oil production scenario, causing a strong need for growth in this exploration and consequently a significant increase in prices charged to the end consumer for the products.

Due to these factors, the ANP believes that this will be a year of strong growth in oil royalties revenue, which are the amounts paid by someone to an owner for the right to use, explore, and market a good, in this case, the commodity.

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Prices Are Expected to Keep Rising with Increased Fuel Production and Oil Royalties Revenue Will Follow This Trend

Still regarding the projections for 2022 related to oil revenue, the Director-General of the ANP, Rodolfo Saboia, commented on the outlook for the coming months and highlighted: “If oil prices remain high, we could reach over R$ 60 billion in royalties revenue in 2022. The numbers are impressive, but we know that even more important is the impact of these values on each beneficiary entity and at the end of the line, in the distribution to citizens.”

And, although the international scenario for oil production and marketing is becoming increasingly unstable, high revenue from product royalties will be quite beneficial for the national market. This is because the purpose of this revenue is to compensate society for the extraction of non-renewable resources and ensure that the benefits obtained from these activities are enjoyed in the future by the next generations. Thus, it is essential for the government to seek alternatives to ensure good revenue concerning these values.

Currently, oil royalties revenue is collected by 11 states and over 900 municipalities. Among them, the top revenue-generating ones are all in the state of Rio de Janeiro: Maricá, Saquarema, Macaé, Niterói, Campos dos Goytacazes, and the city of Rio de Janeiro itself.

Oil Royalty Revenue Expected to Reach R$ 61 Billion in 2022 with Increased Production and Fuel Prices, Says ANP

After a Significant Growth During the First Quarter of the Year, ANP Projects Oil Royalties Revenue of Around R$ 61 Billion for 2022, Driven by Rising Fuel Prices Due to Increased Production

First Quarter of 2022 Saw a 30% Increase in Oil Royalties Revenue and Numbers Are Expected to Keep Growing Until the End of the Year

Prices Are Expected to Keep Rising with Increased Fuel Production and Oil Royalties Revenue Will Follow This Trend

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Oil Royalty Revenue Expected to Reach R$ 61 Billion in 2022 with Increased Production and Fuel Prices, Says ANP

After a Significant Growth During the First Quarter of the Year, ANP Projects Oil Royalties Revenue of Around R$ 61 Billion for 2022, Driven by Rising Fuel Prices Due to Increased Production

First Quarter of 2022 Saw a 30% Increase in Oil Royalties Revenue and Numbers Are Expected to Keep Growing Until the End of the Year

Prices Are Expected to Keep Rising with Increased Fuel Production and Oil Royalties Revenue Will Follow This Trend

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