Diesel Shortage Causes ANP to Request Petrobras to Postpone Maintenance to Mitigate Risk of Supply Shortage in Brazil

Petrobras Confirmed That ANP Requested Postponement of Maintenance for the Second Semester Due to Risk of Diesel Shortage

Petrobras is considering a request made by ANP, the National Agency of Petroleum, Natural Gas and Biofuels (ANP), to delay the scheduled maintenance at its refineries across Brazil, expected for the second semester of 2022. The information was confirmed this Monday (13) by Petrobras, which is evaluating the request made by ANP based on the operational conditions and integrity of the diesel and other fuel refineries.

The planning imposed by ANP aims to prevent the country from facing any type of shortage of diesel, as Brazil does not produce diesel in an acceptable quantity to meet domestic demand, having to purchase it from other countries. However, fuel stocks are low in the main international centers, which has been driving up their costs.

Letter Sent in May to ANP Director Addressed Diesel Shortage

At the end of May, a letter sent by José Mauro Ferreira Coelho, president of Petrobras, to Rodolfo Saboia, director-general of the ANP, became public, in which the Petrobras executive mentioned a “great risk of diesel shortage in the Brazilian market in the second semester of 2022.”

On June 6 of this month, during the inauguration of new members of ANP’s collegiate board, Saboia stated: “The supply of petroleum derivatives is currently a global challenge. At ANP, we have been working diligently to honor our commitment to society to ensure the supply of diesel and other fuels and to protect consumer interests. On the other hand, concerns about energy security reinforce our strategic position to enhance Brazil’s attractiveness as a producer of oil and natural gas.”

In 2021, Brazil imported approximately 23.24% of the diesel used in the country, according to ANP data. In addition to being used for the movement of heavy vehicles, such as buses and trucks that transport goods of all kinds across the country, diesel is also used in thermoelectric power generation in aging plants and in private generators, such as those used in hospitals.

Petrobras Is Close to Undergoing a Transition

The Petrobras is about to experience a moment of transition. On June 9 of this month, the company confirmed it received a letter from the Ministry of Mines and Energy with the names of ten government nominees to the Petrobras Board of Directors, which it controls. Among them are the names of Caio Mário Paes de Andrade for the presidency of the company and Gilenio Gurjão Barreto for the presidency of the Board of Directors.

Currently, the nominees are awaiting the scheduling of an Extraordinary General Meeting, which could elect them.

Truck Drivers Assess Diesel Price Increase

Wallace Landim, known as Chorão, president of the Brazilian Association of Motor Vehicle Drivers (Abrava), reported that truck drivers do not see results in diesel prices with the validation of the complementary bill that sets a cap on ICMS (Tax on Circulation of Goods and Services) rates on fuels, energy, telecommunications, and transport.

According to Wallace, any tax declared to be removed from the fuel price will be useless for its effective reduction. The approved project will still go through the Chamber. “What we have is a temporary reduction that may be enough to lower the price for two or three months at most, and this still depends on the frequency of increases promoted by Petrobras, which is linked to the international market,” he said in a statement.

Chorão also stated that he cannot confirm whether the reduction in fuel prices will reach gas stations and that the category is already striving with the hope of a new announcement of price increases by Petrobras.