Arab Sovereign Fund Mubadala, From Abu Dhabi’s Crown Prince, Which Purchased RLAM Refinery From Petrobras in Bahia, Increases Gasoline and Diesel Prices More Than State-Owned Company

Arab Fund Has Autonomy To Set Its Own Prices And Increased The Price Of Gasoline By 7.40% While Petrobras Adjusted By 1.85%

Despite the frequent spikes in gasoline and diesel prices practiced by Petrobras, the Arab sovereign fund Mubadala, belonging to the crown prince of Abu Dhabi, which purchased the RLAM Refinery from Petrobras in Bahia for US$ 1.65 billion, around R$ 8.25 billion at the time, and has been managing it since December last year, raised the price of gasoline and diesel more than the state-owned company.

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From December to the present, the price of Type A gasoline produced at the Mataripe Refinery (formerly RLAM) increased by 7.40%. The gasoline sold by Petrobras to distributors had an adjustment of 1.85%.

In less than two months, the price of S10 diesel rose by 11.72%, and S500 diesel rose by 9.72% at Acelen’s sales points. In the same period, Petrobras adjusted both fuels by 7.93% and 8%, respectively.

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Arab Fund Has Autonomy To Set Its Own Prices And Acelen Sells The Same Type Of Gasoline At R$ 0.18 Per Liter More Expensive Than Petrobras

In the last price adjustment for fuels, which occurred on the 12th, Petrobras announced that the average sale price for gasoline to distributors would rise to R$ 3.24 per liter, and diesel R$ 3.61 per liter.

The same type of gasoline is sold for R$ 3.42, and diesel for R$ 3.62, by the Arab sovereign fund Mubadala’s company. We refer to the average because fuel prices may vary due to regional production issues. According to Acelen itself, however, the percentage adjustments applied to these prices are linked to the oil price on the international market and the exchange rate.

Although the arguments put forward for raising the prices of gasoline and diesel are the same as those used by Petrobras – the international price parity policy – increases in fuels sold by Acelen have still surpassed state-run adjustments.

Deyvid Bacelar, general coordinator of the Unified Petroleum Workers Front (FUP) and director of the Bahia Petroleum Workers Union (Sindipetro-BA), stated in an interview with Brasil de Fato that the reason Acelen raises fuel prices more than Petrobras is the pursuit of higher profits: “We are dealing with an investment fund from the Arab Emirates that manages resources from Abu Dhabi’s sovereign fund. So, the return has to be financial and immediate, at any cost. If this results in higher prices for the population of Bahia and the Northeast, that doesn’t matter,” he criticized.

Acelen was questioned by Brasil de Fato about the difference in adjustments applied by the company and Petrobras but did not comment on the matter. In a statement, the company declared that its “pricing policy is independent, preserves competitiveness, and is based on technical and transparent criteria.”

Spike In Gasoline And Diesel Prices Practiced By Acelen, The Arab Sovereign Fund’s Company, Further Affects The Consumers’ Wallets In Bahia

While the adjustment made by Petrobras increased the price of gasoline by R$ 0.15 per liter, reaching an average of R$ 3.24, the company estimated that this would increase the fuel price at the pumps and impact consumers’ wallets by about R$ 0.11.

It is important to remember that, on the price of fuel marketed by the state until it reaches the consumer, state and federal taxes, as well as resale costs, apply.

Acelen has adjusted the price of gasoline four times in less than two months. On December 18, it reduced its prices. Starting on January 1, 15, and 22, it raised them.

Situation May Change If The Distributors In Bahia Start Importing Fuels 

Last December, when Acelen went against the trend and confronted Petrobras’s price movement by not reducing the price of gasoline, the executive secretary of the entity, Marcelo Travassos, said that Bahia consumers depend on Acelen’s pricing policy, but the situation may change if distributors in Bahia start importing fuels if such an operation becomes economically more viable.

In December, in Salvador, the prices of gasoline reached R$ 7.09 for common type, whereas it averaged R$ 5.99. Common ethanol was sold for over R$ 6, and diesel reached the same level.

After the price reduction announced by Petrobras on the afternoon of December 15, common gasoline with the lowest price was going for R$ 6.42.