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The Price of Gasoline Rose More Than 50% Between 2020 and 2022. See Why It Remains High and What Really Impacts the Value That Reaches Your Pocket
For those who drive frequently — or even for those who just consume transported products — the price of gasoline in Brazil is a constant burden. The rise in fuel prices impacts the entire economic chain: it increases the cost of transporting goods and, consequently, raises the price of almost everything in the market. But after all, why is Brazilian gasoline so expensive, even though it is a country with abundant oil reserves?
What Is Oil and Why Is It So Difficult (and Expensive) to Explore?
Oil is a natural mixture of hydrocarbons resulting from the decomposition of algae and small marine organisms over millions of years. Contrary to what many people believe, dinosaurs have nothing to do with this.
Extracting it, however, is a technological feat. Reservoirs are often kilometers deep. In Brazil, Petrobras dominates this process. Founded in the 1950s, the state-owned company is now one of the largest oil companies in the world, responsible for more than 3 million barrels daily. However, this does not mean we are free from international influence — far from it.
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From the Well to the Station: Where Does Your Money Go?
Did you know that when you fill up R$ 100 of gasoline, less than half actually goes to Petrobras? According to updated data from the company itself, the distribution is approximately as follows:
- Petrobras: R$ 36
- Distribution and Resale: R$ 17
- Anhydrous Ethanol: R$ 13
- Federal Taxes: R$ 22
- State Taxes: R$ 11
This shows that almost half of the price comes from internal policies, especially taxes. The rest depends on global variables.
The Impact of the Dollar and the Barrel on Your Pocket
Despite robust domestic production, Brazil still imports petroleum derivatives. This is due to our low refining capacity — the refineries are few, old, and adapted for heavy oil, while Brazilian pre-salt offers light, more valuable oil, but is underutilized here.
What’s the consequence? We sell part of our crude oil abroad, buy it back already refined… and pay in dollars. Thus, any global instability can cause prices to spike here.
This is what happened during the war in Ukraine, when the barrel reached nearly US$ 140. Or during the pandemic, which first reduced demand and then caused a rebound effect with price increases of up to 50% between 2020 and 2022.
The Problem with the Pricing Policy
Until recently, Petrobras used the so-called Import Parity Pricing Policy (PPI), which tied the domestic price of fuels directly to the international market. In 2023, the state-owned company abandoned the PPI, adopting a new pricing policy that takes into account internal and regional factors.
Despite this, the reduction in the average gasoline price was only 5%, according to analyses from the industry itself.
Possible Solutions (and Their Challenges)
1. More Refineries?
An obvious answer would be to build new modern refineries capable of processing the light oil from the pre-salt. But this would require billions in investment and decades to materialize.
2. Investment in Clean Energy
Another solution is the gradual replacement of fossil fuels with renewable sources. Solar, wind energy, and the use of electric vehicles are real promises. However, these also have challenges — such as the environmental impact of batteries — and require infrastructure.
3. Quality Public Transport
Reducing the number of cars on the streets is one of the most effective ways to cut gasoline consumption. Cities with efficient public transport consume less fuel and offer a better quality of life.
An Inevitable Transition
Oil is the black gold of the 20th century, but it may not be the fuel of the future. Even today, its influence is such that conflicts in distant countries directly interfere with the budget of Brazilians in any corner of the country. However, as renewable energies become more viable, both ecologically and economically, the trend is that the dependence on oil — and the volatile gasoline prices — will decrease.
As with any transition, there will be costs and resistance. But the current scenario is not sustainable, and the future demands bold changes.
How much is a liter of gasoline in your city today? Leave it in the comments and follow us for the evolution of these prices.
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