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Proposed Changes Do Not Reduce Fuel And Biofuel Prices, Disrupt The Market, Confuse Consumers, And Discourage Investments, According To The Brazilian Institute Of Oil And Gas

Written by Paulo Nogueira
Published on 24/11/2021 at 09:11
Updated on 24/11/2021 at 09:37
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The Brazilian Institute of Oil and Gas (IBP) supports the regulatory improvement of the distribution and resale activities of derivatives and biofuels. However, the Institute cautiously evaluates the changes established by ANP Resolution No. 858/21 and proposals still in MP 1063/21 and MP 1069/21 that, among other aspects, allow a branded gas station to sell fuel from a different supplier than the commercial brand it displays. 

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The justifications and objectives presented for the changes are not feasible. Fuel prices for the final consumer will not be reduced, and competition in the sector will not be stimulated. On the contrary, the measures pose risks, especially to customers. The regulation brings weak requirements that do not ensure the true origin of the product, violate brand and consumer rights, and create legal insecurity for investments. 

Currently, there are 42,000 reselling gas stations across the country. Almost half of these, known as “white flag” stations, do not display a commercial brand associated with a distributor, allowing them to sell fuel from any supplier. The other part of the resellers, the “branded stations,” chose to showcase a distributor’s commercial brand and benefit from the advantages of linking their business to a renowned brand: marketing plans, customer loyalty, training, network identity. 

Confusion Among Suppliers, Market, and Customers

The possibility of selling fuel from other suppliers at branded gas stations will certainly create confusion in the market and for consumers who chose to fill up at a specific station due to the brand but may purchase a product from another source. Consumers will not know the true provenance of the product being sold, as the Resolution does not require fuel from different sources to be stored in separate tanks, allowing the mixing of purchased products and jeopardizing any traceability. Moreover, there is no obligation to differentiate the pumps of the stations, and simply providing information through a basic sticker is not enough to ensure that the consumer’s choice is preserved. 

The risks to consumers have also been highlighted by the Brazilian Institute of Consumer Policy and Law – Brasilcon – in a recent technical note. The document reinforces that the changes in the commercialization of derivatives aim for free competition but do not evaluate issues such as consumer protection regarding the quality and safety of the offered products and services. Brasilcon reminds us that the Federal Constitution treats consumer rights as fundamental rights, making it the state’s role to establish regulations that effectively protect consumers, warning about the “unconstitutionality flaw” of the Provisional Measures. 

The new rule has no parallel in other sectors or countries and may intensify irregularities, as it complicates oversight and increases regulatory costs, as well as discouraging investments. 

The IBP supports the development of the industry for an increasingly open and competitive market, but advancements in the sector must be guided by legal and operational safety, predictability for investors, effective oversight, and protection of consumer interests. 

Source Author of the Note: IBP

Paulo Nogueira

Eletrotécnica formado em umas das instituições de ensino técnico do país, o Instituto Federal Fluminense - IFF ( Antigo CEFET), atuei diversos anos na áreas de petróleo e gás offshore, energia e construção. Hoje com mais de 8 mil publicações em revistas e blogs online sobre o setor de energia, o foco é prover informações em tempo real do mercado de empregabilidade do Brasil, macro e micro economia e empreendedorismo. Para dúvidas, sugestões e correções, entre em contato no e-mail informe@en.clickpetroleoegas.com.br. Vale lembrar que não aceitamos currículos neste contato.

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