Diesel Is 3% Above International Parity in Bahia, Opening Space for Imports

Written by Roberta Souza

Published on 15/05/2022 at 20:59

Foto: Reprodução Adobe Stock

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Bahia Market Is An Exception In Diesel Deficit Due To Large Oil Refinery

According to the Brazilian Association of Fuel Importers (Abicom), the price of diesel in Brazil remains lower compared to the international market, even with the 8.9% increase announced on May 9 by Petrobras. The Bahia market is an exception, as it hosts Brazil’s only large private refinery, the Mataripe Refinery, controlled by Acelen, a subsidiary of Mubadala, an Arab investment fund.

According to Broadcast, diesel prices are 3% above international parity in Bahia, which opens up opportunities for imports. Acelen raised the diesel price last week to up to R$ 5.63, with an average of R$ 5.39 per liter, or 9.7% above Petrobras’s price after the increase on May 9.

In the other ports of Brazil, which follow Petrobras’s prices, the diesel discrepancy varies between 10% and 11%, making it unfeasible for small and medium producers to import. This deficit poses risks of reducing the diesel supply in Brazil, potentially leading to further increases or even rationing at some more distant gas stations. Brazil purchases about 25% of all the diesel it consumes.

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Why Does Petrobras Not Practice Import Parity Price (IPP) Only For Exported Oil Instead Of Taxing All National Production?

Petrobras’s International Parity Policy (IPP) was implemented in 2016, when it was led by Pedro Parente, during the administration of former President Michel Temer, who took office after supporting the impeachment of Dilma Rousseff. In practice, the approach is to dollarize the price of oil extracted, refined, and consumed right here in Brazil, resulting in rising prices for derived fuels whenever the product value increases abroad.

An oil and gas specialist from Petrobras, consulted by the CPG Portal – Click Oil and Gas, recalls that attempts at freezing and subsidies, carried out by other administrations, caused billion-dollar losses to the state-owned company.

“If this is done, it destroys the value chain (ethanol producers, private refiners, fuel formulators, Braskem, imported products),” Gauto said, recalling that the policy of practically freezing fuel prices in 2014 cost almost R$ 100 billion, even harming ethanol at the time, as the percentage of alcohol in regular gasoline is 27%, and therefore market regulation is necessary.

Privatization Of Petrobras’s Oil Refineries Will Raise Fuel Prices In Brazil, According To TCU Projections

Although Petrobras’s project regarding the privatization of 8 oil refineries, announced in 2019, is beneficial for the company, fuels in Brazil may face short-term price increases. These projections were made in the report from the Federal Court of Accounts (TCU), released last Tuesday (05/10), which also points out the main issues surrounding this process of selling structures to private companies. To learn more, read the full article by clicking here.

Diesel Is 3% Above International Parity in Bahia, Opening Space for Imports

Bahia Market Is An Exception In Diesel Deficit Due To Large Oil Refinery

Why Does Petrobras Not Practice Import Parity Price (IPP) Only For Exported Oil Instead Of Taxing All National Production?

Privatization Of Petrobras’s Oil Refineries Will Raise Fuel Prices In Brazil, According To TCU Projections

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Diesel Is 3% Above International Parity in Bahia, Opening Space for Imports

Bahia Market Is An Exception In Diesel Deficit Due To Large Oil Refinery

Why Does Petrobras Not Practice Import Parity Price (IPP) Only For Exported Oil Instead Of Taxing All National Production?

Privatization Of Petrobras’s Oil Refineries Will Raise Fuel Prices In Brazil, According To TCU Projections

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

The river that “dies” in the desert never reaches the sea and yet gives life to one of Africa’s largest natural refuges in a truly impressive way.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Libya built over 4,000 kilometers of underground pipelines to bring water from the Sahara to coastal cities in a project that the government itself called the Eighth Wonder of the World.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

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Brazil will dredge the bottom of the Port of Santos in a R$ 617.9 million project to deepen the channel to 16 meters, accommodate larger ships, and reduce dependence on tides at the largest port in the Southern Hemisphere.

Bothered by millions of bricks discarded every year in Norway, a company cuts old pieces into thin slices, secures them with a metal system, and transforms demolition into a new 1,800 m² facade.

Taiwan erects a 4 km maritime wall in the Port of Taipei, installs concrete coffers against waves up to 7 meters, and transforms dredged sediments into new land to expand one of the island’s most strategic ports.

Peter Andrews was reported by his neighbors, lost the farm to the bank, and saw his marriage fall apart, but the method that the government rejected for 30 years was recognized by the UN as one of the five agricultural models.

Transport entrepreneur warns that a truck can be profitable and ruin a family, shows how installments consume cash, turns the owner into a debt manager, and reveals why self-employed individuals only grow with margin, reserve, and cost control before financing another heavy vehicle.