Soaring gasoline, ethanol and diesel prices do not prevent high demand for fuels in Brazil, which has agriculture and transport as allies

Demand for gasoline, ethanol and diesel is on the rise even as fuel prices soar in Brazil. Demand for diesel in the 3rd quarter of 2021 should surpass the levels recorded in the same period of 2019, pre-pandemic year, is what points out the S&P Global Platts Analytics Oil Market Forecast Report for Latin America. Demand should reach the level of 1,1 million barrels per day, 15 thousand barrels more than in 2019.

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The report shows that support from the agriculture and transport sectors, strong retail sales and better-than-expected economic performance are factors that should influence the increase in demand for diesel in the near term. However, COVID-19 infections, political tensions and the ongoing drought are points of attention that could interfere with the projections.

Gasoline and ethanol

The report by S&P Global Platts Analytics, the main independent provider of information and reference prices for the commodities and energy markets, also points out that demand for gasoline and ethanol in the third quarter of 2021 is expected to grow in Brazil, reaching 885 thousand barrels per day, about 15 thousand barrels per day more compared to the same period of 2020.

About S&P Global Platts – The leading independent provider of information and benchmark prices for the commodities and energy markets, S&P Global Platts has clients in more than 150 countries who rely on the company's expertise in news, pricing and analysis to bring greater transparency and efficiency to markets.

Loyalty to the brand at gas stations will end and the sale of fuel via delivery will be released; measure promises to reduce the price of gasoline by stimulating competition

National Agency of Petroleum, Gas and Biofuels defends the commercialization of different brands in the same gas station, making the “regulatory protection of loyalty to the flag” more flexible.

In addition, the Agency wants a new way of acting in resale, which allows delivery outside the gas station facilities, through the delivery service. The draft resolution will be submitted for public consultation and hearing.

Among the proposals mentioned above, the ANP also defends the elimination of the use of the third decimal place in fuel price lists. The objective, according to the agency, is to bring greater clarity in the presentation of prices to Brazilians.

The Government believes that the measure will stimulate competition between brands and could reduce the price of gasoline by up to R$ 0,50 per liter. However, there are distributors who oppose the measure, claiming that they invest in gas stations and that the measure would benefit companies that operate irregularly, whether by evading taxes or selling poor-quality products.

The delivery system for delivering gasoline outside the station's facilities, which has already been tested in Rio de Janeiro by GOfit, is also causing controversy.

Diesel, gasoline and LPG soar again, hitting truck drivers and millions of Brazilians who suffer as a result of disproportionate increases in relation to current income

Undetermined strike by truck drivers, starting July 25, against the increase in fuel prices, does not intimidate Petrobras, which made a new readjustment in the prices of diesel, gasoline and LPG

High gasoline, diesel and cooking gas prices did not prevent Petrobras from increasing fuel prices even more on July 06, which began with a blow to the pockets of truck drivers and millions of Brazilians who suffer as a result of disproportionate increases in relation to current income. The new increase that came into effect as of yesterday caught the direction of the National Cargo Transport Council - CNTRC by surprise, given that there was a "positive" meeting of the entity held just a week ago with the president of Petrobras.

Undetermined strike by truck drivers, starting July 25, against the increase in fuel prices practiced by Petrobras. Every category is convened by the National Road Cargo Transport Council - CNTRC, through a note, for a stoppage, for an indefinite period, from the next 25th of July, truck driver's day (São Cristovão). Cristovão means “he who carries Christ”. Click here to read the full statement.