Increase in Diesel Price Announced by Petrobras Will Result in Higher Costs Across the Entire Cargo Transport Logistics Chain

Written by Ruth Rodrigues

Published on 12/05/2022 at 13:35

Foto: U. J. Alexander/iStock

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Setcemg’s Projections Indicate That the Diesel Price Increase Announced by Petrobras Will Lead to Higher Costs Across the Entire Cargo Transportation Logistics Chain, Causing a Major Impact on Both National and International Trade

With the average increase of 8.87% on the diesel price announced by Petrobras and starting last Tuesday (05/10), the Union of Cargo Transport and Logistics Companies of Minas Gerais (Setcemg) has made projections for the future market. Thus, the agency indicates that this adjustment will lead to increased transportation costs amid the new dynamics of the logistics chain within the segment.

Increase of R$ 0.45 in the Average Cost of Diesel Liters at Brazilian Gas Stations, Announced by Petrobras, Will Change the Cargo Transportation Logistics and Raise Operational Costs

Petrobras recently announced a series of changes and adjustments in fuel prices, with diesel experiencing an average increase of 8.87%, which represented a rise of R$ 0.45 per liter at national gas stations. Therefore, cargo transportation logistics companies will have to readjust after this decision, as there will be an increase in costs related to this fuel, as already anticipated by Setcemg.

This adjustment demonstrates yet another rise in fuel prices, with diesel already accumulating an increase of 47% this year at Petrobras refineries. Consequently, the entire cargo transportation logistics chain will be affected, as companies may not be able to absorb this price increase. This is because diesel is one of the most significant fuels in this segment, representing about 35% to 40% of cargo transportation companies’ costs, which poses a serious impact on the sector.

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May Will Be Essential to Understand the New Dynamics Surrounding Pricing in Cargo Transportation Logistics After the Adjustment Made by Petrobras

The month of May is inherently a month of significant instability in the national market, marked by major changes in material and labor costs. With the diesel price adjustment made by Petrobras, the coming weeks will be crucial for the national market’s adaptation regarding pricing in cargo transportation logistics.

Setcemg also emphasized during its comments on the fuel price increase that not only the cargo transportation segment will be affected, but the entire freight logistics in Brazil. This means that public transport will also have to readjust their prices to cover the increases in diesel prices, further raising mobility costs for workers and Brazilian citizens over the coming months.

Finally, the union also highlighted the seriousness of the current moment, especially in May, stating that in decades of operation in this segment, they have never experienced such volatility and instability in fuel prices. What is now expected is that the Federal Government and Petrobras take measures regarding the current situation.

Increase in Diesel Price Announced by Petrobras Will Result in Higher Costs Across the Entire Cargo Transport Logistics Chain

Setcemg’s Projections Indicate That the Diesel Price Increase Announced by Petrobras Will Lead to Higher Costs Across the Entire Cargo Transportation Logistics Chain, Causing a Major Impact on Both National and International Trade

Increase of R$ 0.45 in the Average Cost of Diesel Liters at Brazilian Gas Stations, Announced by Petrobras, Will Change the Cargo Transportation Logistics and Raise Operational Costs

May Will Be Essential to Understand the New Dynamics Surrounding Pricing in Cargo Transportation Logistics After the Adjustment Made by Petrobras

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Increase in Diesel Price Announced by Petrobras Will Result in Higher Costs Across the Entire Cargo Transport Logistics Chain

Setcemg’s Projections Indicate That the Diesel Price Increase Announced by Petrobras Will Lead to Higher Costs Across the Entire Cargo Transportation Logistics Chain, Causing a Major Impact on Both National and International Trade

Increase of R$ 0.45 in the Average Cost of Diesel Liters at Brazilian Gas Stations, Announced by Petrobras, Will Change the Cargo Transportation Logistics and Raise Operational Costs

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China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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