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Fogás Warns Of 35% Increase In LPG (Cooking Gas) Prices Charged To Distributors In Northern Brazil After Privatization Of The Reman Refinery

Written by Ruth Rodrigues
Published on 27/01/2023 at 21:29
A distribuidora havia alertado sobre os possíveis riscos do projeto de privatização da refinaria Reman ao mercado do Norte do Brasil. A Fogás agora aponta para o forte crescimento nos preços do GLP cobrados às distribuidoras na venda do produto.
Foto: Petrobras
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The Distributor Had Warned About The Possible Risks Of The Privatization Project Of The Refinery Reman To The Market In Northern Brazil. Fogás Now Points To The Strong Growth In The Prices Of The LPG Charged To The Distributors In The Sale Of The Product.

The Fuel Market Scenario In Northern Brazil Is Not Favorable For Distributors This Friday, (01/27). After The Privatization Of The Reman Refinery In Manaus, Which Took Place In November 2022, The Prices Of LPG Charged To The Distributors In Amazonas And Roraima Rose By Up To 35%. Fogás Warns Of The Consequences Of The De-Statization Project On Fuel Supply In The Region At The Beginning Of This Year.

Fogás Points Out Problems In The LPG Distribution Market In The States Of Roraima And Amazonas After The Privatization Of The Reman Refinery

The Privatization Project Of Petrobras Refineries Continues To Generate Serious Consequences For The National Fuel Market At The Beginning Of 2023.

After The Privatization Of The Reman Refinery In Manaus, Which Occurred In November 2022, The LPG Distribution Market In Roraima And Amazonas Was Strongly Affected.

The Distributor Company Fogás Points Out The Increase In Prices Charged To Distributors For The Sale Of The Product.

Since The Sale Of The Refinery, The Price Of LPG For Distributors Has Increased By R$ 1,240 Per Ton, 35% Above The Average Price Charged By Petrobras In Other Regions.

During The Privatization Process, Fogás Told Cade And Anp That If The New Owner Increased Prices, Local Consumers Would Be Affected, As Amazonas And Roraima Exclusively Depend On Reman For Fuel Supply.

The Sale Of Petrobras’ Refinery To Atem Distribuidora Has Caused Significant Conflicts In The Distribution Of LPG In The North Of The Country.

According To Fogás, Reman Attributed The Price Increase To The Sale Of LPG From Petrobras To Atem At The Same Price It Sells To Distributors In Coari, Amazonas.

Coari Is An Important Natural Gas Terminal That Distributes The Production From Petrobras’ Natural Gas Fields In The Solimões Basin, At The Urucu Pole, One Of The Largest In Brazil.

Thus, The Commercialization Of LPG To Consumers In These States May Be Strongly Affected In The Coming Months.

Fogás Issues Open Letter To ANP Alerting To The High Prices Charged For LPG In The Fuel Market Of The Northern Country After The Privatization Of The Refinery

After The Privatization Of The Reman Refinery And Excessive Increases In LPG Prices, Fogás Issued An Open Letter To ANP.

In It, The Distributor Highlights That Even With The Worst Living Conditions In Regions Of Brazil, Residents Of The Northern Region Are Still Having To Pay The Highest Prices For Fuels.

According To Fogás, LPG Is Being Sold In Belém At The Same Price As In Coari, Without Considering The High Costs Of River Transport And Piloting Between The Two Localities.

“This Unjustified Subsidy, Which Amounts To More Than 10 Reais Per Cylinder, Allows, For Example, LPG Distributors Based In Belém To Have More Competitive Prices To Operate In The Majority Of The State Of Amazonas And Even In Manaus,” Said The Distributor.

The Company Stated That Before Making Any Internal Decisions Regarding The Future Of Its LPG Distribution Operations, It Needs To Know What Petrobras’ Position Is Regarding The LPG Pricing Policy In Coari.

Now, Fogás Hopes That Fuel Sector Authorities Can Intervene In The Unstable LPG Commercialization Scenario Caused By The Privatization Of The Reman Refinery.

Ruth Rodrigues

Formada em Ciências Biológicas pela Universidade do Estado do Rio Grande do Norte (UERN), atua como redatora e divulgadora científica.

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