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Cheaper Cooking Gas! ANP Approves Measure That Eliminates the Intermediary

Written by Renato Oliveira
Published on 19/07/2019 at 15:55
Updated on 19/07/2019 at 16:42
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Ban On Sales By Fuel Distributors Was Lifted By ANP And With Direct Sales, Without Intermediaries, The Government Expects A Reduction In The Price Of The 13 Kg Gas Cylinder

As a result of discussions for changes in the gas sector rules, ANP revoked, yesterday (07/18), articles 36 of resolution 49/2016 and 27 of 51/2016, which prohibited LP gas distributors from selling cooking gas directly to consumers.
The commercialization of LP gas has been discussed since last year, and the approved measure aims to eliminate intermediaries in the sales of liquid fuels and natural gas and increase competition in the sector.

Price Drop

ANP’s understanding, upon adopting the measure, is that the costs of maintaining intermediary companies were passed on to consumers, and with their elimination, the government will have a smoother path in pursuit of 50% Reduction In Gas Prices, according to the intention of the new federal government.

One of those who voted in favor of the proposal, ANP’s Director-General, Décio Oddone, stated in his vote that the price of LP gas will be free from the profit margins of resellers.
“LP gas costs an average of R$ 70 (…) The product value corresponds to about R$ 26, taxes are R$ 12, and the rest are distribution and resale margins,” he stated.

As we can see, almost 50% that falls into the hands of resellers increases the price of cooking gas for the end consumer. (See in the graph below).

The Director-General of the agency also concluded that, “It is the end of the obligation that the 13 kg cooking gas cylinder has to go through the LP gas reseller before reaching the consumer; thus we are eliminating a regulatory restriction that was never confirmed in practice.”

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Renato Oliveira

Engenheiro de Produção com pós-graduação em Fabricação e montagem de tubulações com 30 anos de experiência em inspeção/fabricacão/montagem de tubulações/testes/Planejamento e PCP e comissionamento na construção naval/offshore (conversão de cascos FPSO's e módulos de topsides) nos maiores estaleiros nacionais e 2 anos em estaleiro japonês (Kawasaki) inspecionando e acompanhando técnicas de fabricação e montagem de estruturas/tubulações/outfittings(acabamento avançado) para casco de Drillships.

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