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In a statement, the Unified Federation of Oil Workers (FUP) reported that “LPG is produced in the same refining stream as gasoline, whose production has been reduced by Petrobras due to the drop in demand caused by social distancing measures during the Covid-19 pandemic. Thus, Brazil becomes more dependent on the import of cooking gas, and therefore, subject to the supply and price fluctuations of the product in the international market, as well as the dollar exchange rate. Added to this is the misguided strategy of the current management of the company to sell assets such as BR Distribuidora, a fuel distributor, and Liquigás, a cooking gas company, which gave Petrobras a leading position in the derivatives market and the ability to benefit the consumer.”
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“Petrobras’ management announced that it has increased the import of the product to meet the growing demand, but continues to reduce the output of its refineries. However, with high gasoline stocks, the company’s trend is to further decrease LPG production, becoming even more at the mercy of the international market and the dollar exchange rate,” says the statement.
José Maria Rangel, general coordinator of FUP, says that “The current management of Petrobras lacks transparency in showing what is actually happening. The company has been hibernating oil platforms, reducing refinery output, but does not disclose which units will be shut down, affecting the workers of the company as well. With this, we do not even know what the impact on fuel production, including cooking gas, will be. Cooking gas is an essential product, especially for low-income populations. And at this very difficult time for everyone, the current management of Petrobras, instead of fulfilling the social role the company has had since its inception, threatens supply security due to a tax dispute with the ethanol sector. The concern continues to prioritize only the company’s shareholders.”
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