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Beyond The Constant Surge In Fuel Prices, Conflict Between Russia And Ukraine May Generate Scarcity And Supplies Of Gasoline And Diesel In Brazil
One of the reflections of the Russia-Ukraine conflict that most impacts Brazilians is the increase in fuel prices. It is known that Brazil is self-sufficient in oil, but not in derivatives. In this sense, the president of Rodoil, the largest fuel distributor in southern Brazil, Roberto Tonietto, warns of the shortage of refined products, such as diesel and gasoline – products that tend to become scarcer as the conflict progresses.
According to the president of Rodoil, Roberto Tonietto, Brazil is self-sufficient in oil, but not in derivatives. The reflections of the Russia-Ukraine conflict may worsen in the coming months.
Watch The Video Below And Check In Detail The Specialist’s Opinion On The Impact In Brazil Of The Russia-Ukraine Conflict
“We were already facing some supply problems of gasoline and diesel in the market due to lockdowns and the consequent stoppages in the production of derivatives. The resumption of production has not kept pace with demand and with the current scenario, we have a new challenge,” says Tonietto.
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According to him, quickly replacing the entire volume of oil production from Russia, which accounts for 11% of global production, is a difficult equation to solve. “Even with the end of the war, this problem will take months to be resolved. We might not see a structural solution until the end of 2023,” he assesses.
There Is No Risk Of Running Out Of Oil In Brazil, But The Deficit In Refined Products Such As Diesel And Gasoline Is Concerning And Deserves Attention
Regarding the national scenario, Tonietto emphasizes that there is no risk of running out of oil in Brazil, but the deficit in refined products such as diesel and gasoline is concerning and deserves attention. “We process about 70% of our needs and purchase 30% of the refined product from abroad. The problem is not in oil, but in the derivatives, which generate difficulties in supplying the domestic market. Consumers have not yet felt the problem of product shortages, but distributors and gas stations are already experiencing product scarcity issues. However, we are mobilizing to find solutions to ensure the flow of internal supply,” he concludes.
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