Brazilians Spike Ethanol Consumption and 'Force' Petrobras to Lower Gasoline Price by R$0.12 on Saturday (October 21); Strategic Move Goes Against Rising Brent Oil Prices of $90

Brazilians Spike Ethanol Consumption and ‘Force’ Petrobras to Lower Gasoline Price by R$0.12 on Saturday (October 21); Strategic Move Goes Against Rising Brent Oil Prices of $90

Written by Flavia Marinho

Published on 21/10/2023 at 11:04

Updated on 21/10/2023 at 11:06

Baixa no preço da gasolina, diesel e etanol gera fila em posto de combustível da Petrobras / Imagem UOL

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To Stay Competitive with Ethanol, Petrobras Reduces Gasoline Price; Conversely, Diesel Becomes More Expensive in Attempt to Balance Brent Oil Price Surge, Which Stays Firm Above 90 Dollars.

Petrobras surprised the market by announcing a reduction of 4% in gasoline prices sold at its refineries, in a strategic move to regain lost ground to its ethanol competitor. This decision was made with the high utilization factor of Petrobras’ refineries in mind, indicating an effort to increase its penetration in the domestic fuel market.

Conversely, the oil company raised the price of diesel by R$ 0.25 per liter, making its average sales price of diesel A for distributors R$ 4.05 per liter. Considering the mandatory blend of 88% diesel A and 12% biodiesel in the diesel sold at gas stations, Petrobras’ share of the consumer price will be, on average, R$ 3.56 for every liter sold at the pump.

Brent Oil Maintains Firm Prices Above 90 Dollars a Barrel

The international oil market Brent remains firm above 90 dollars per barrel, which, at first glance, may seem contradictory to the reduction of gasoline prices. However, this action appears to be motivated by supply and demand conditions in the domestic market and the increasing competition from hydrated ethanol in Brazil, which has caused a decline in gasoline consumption.

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Conversely, Petrobras Increased the Diesel Price by 6.58%

While Petrobras seeks to balance its position in the gasoline market against ethanol, the company also announced a 6.58% increase in the average sales price of diesel to distributors. This move may be a response to international market demand and domestic needs, reflecting the complexity of the company’s decisions in the current scenario.

The Petrobras is facing significant challenges regarding competition and changes in the fuel market. With the growing preference of Brazilian consumers for ethanol and the fluctuations in oil prices in the global market, the company is adopting a strategy that combines gasoline price reductions to gain competitiveness in the domestic market while increasing diesel prices to align with international demands.

Strategy to Win Over the Consumer

By making these decisions, Petrobras demonstrates a commitment to innovation and sustainability, which are essential elements in the modern fuel market. The company is facing competition from ethanol, a more eco-friendly alternative, and adjusting its prices to remain competitive. The future of the fuel market will be shaped by these strategies and the consumer’s response to price changes.

The pursuit of consumer preference promises to continue shaping the fuel landscape in Brazil in the coming years.

Brazilians Spike Ethanol Consumption and ‘Force’ Petrobras to Lower Gasoline Price by R$0.12 on Saturday (October 21); Strategic Move Goes Against Rising Brent Oil Prices of $90

To Stay Competitive with Ethanol, Petrobras Reduces Gasoline Price; Conversely, Diesel Becomes More Expensive in Attempt to Balance Brent Oil Price Surge, Which Stays Firm Above 90 Dollars.

Brent Oil Maintains Firm Prices Above 90 Dollars a Barrel

Conversely, Petrobras Increased the Diesel Price by 6.58%

Strategy to Win Over the Consumer

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Brazilians Spike Ethanol Consumption and ‘Force’ Petrobras to Lower Gasoline Price by R$0.12 on Saturday (October 21); Strategic Move Goes Against Rising Brent Oil Prices of $90

To Stay Competitive with Ethanol, Petrobras Reduces Gasoline Price; Conversely, Diesel Becomes More Expensive in Attempt to Balance Brent Oil Price Surge, Which Stays Firm Above 90 Dollars.

Brent Oil Maintains Firm Prices Above 90 Dollars a Barrel

Conversely, Petrobras Increased the Diesel Price by 6.58%

Strategy to Win Over the Consumer

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

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.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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Brazil, Norway, and the Netherlands aim to create the first green maritime corridor in the Atlantic, after routes emitted 4.7 million tons of CO₂e, and seek to transform ports, fuels, and trade between South America and Europe into a new global logistics race.

Russia wants to build new nuclear plants in Brazil and is negotiating an agreement with the Lula government to expand Rosatom’s presence in atomic energy projects, small reactors, and peaceful nuclear technology.

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Seen from space, an underwater volcano erupts in the Pacific, spewing smoke directly from the sea, spreading floating pumice, and may be creating a new island in a region so poorly mapped that scientists still do not know exactly which structure is erupting.