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In addition to the constant spikes in fuel prices, the conflict between Russia and Ukraine could lead to gasoline and diesel shortages and supplies 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. Reflections of the Russia-Ukraine conflict may worsen in the coming months.
Watch the video below and see in detail the expert's opinion on the impact of the Russia-Ukraine conflict on Brazil
“We were already facing some gasoline and diesel supply problems in the market due to the lockdowns and the consequent stoppages in the production of derivatives. The resumption of production did not keep pace with demand and with the current scenario, we have a new challenge”, says Tonietto.
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According to him, quickly restoring the entire volume of oil production in Russia, which accounts for 11% of world production, is an equation that is difficult to solve. “Even with the end of the war, this problem will take months to be resolved. Perhaps we will arrive by the end of 2023 for this structural issue to have a solution ”, 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 worrying and deserves attention
With regard to the national scenario, Tonietto stresses that there is no risk of running out of oil in Brazil, but the deficit in refined products such as diesel and gasoline is worrying and deserves attention. “We process around 70% of our needs and buy 30% of our refined products from abroad.. The problem is not oil, but derivatives, which create difficulties in supplying the domestic market. The consumer has not yet felt the problem of product shortages, but distributors and service stations have already experienced product shortages. However, we are mobilizing to find solutions in order to guarantee the flow of internal supply”, he concludes.
