In Recent Months, The Importation of Russian Diesel to Brazil Has Increased, Mainly by Small and Medium-Sized Companies

Written by Bruno Teles

Published on 12/04/2023 at 16:17

diesel russo no Brasil (foto/divulgação)

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Importation of Russian Diesel in Brazil by Small and Medium Distributors.

The Brazilian Association of Fuel Importers (Abicom) announced that sales of Russian diesel to Brazil increased to 13.9% in February and 18.5% in March of this year, driven by lower prices offered by Russian suppliers.

While the three major fuel distributors in the country – Vibra, Raizen, and Ipiranga – have not yet imported Russian diesel, Abicom, which represents ten small and medium-sized companies, confirmed that at least two of the associated companies are already importing the Russian product.

Additionally, the importer Nimofast, which is not associated with Abicom, has been importing the largest volumes of Russian diesel to Brazil, adhering to the compliance standards of the Brazilian and European markets.

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More Attractive Prices

The companies are taking advantage of the lower prices of Russian diesel, negotiated with a differential of up to US$ 0.20 below the rest of the market. This price difference is significant, reaching nearly R$25.00 per cubic meter or R$0.25 per liter, which is very substantial in a market with tight margins.

Ukrainian Conflict

Under normal conditions, the geographic distance between Brazil and Russia would increase freight costs and make the price of the Russian product less attractive. However, the war in Ukraine has allowed trade routes to be executed and the final prices of the product to be reduced to undercut offers from other markets, such as the United States, which is the largest supplier of diesel to Brazil.

Although large fuel distributors in Brazil maintain strong business relations with traditional suppliers, it is important for companies to diversify their business relationships, seek new suppliers, and more competitive prices in pursuit of greater efficiency and profitability. However, it is crucial for companies to follow the compliance standards of the Brazilian and European markets to ensure the success of their operations.

In Recent Months, The Importation of Russian Diesel to Brazil Has Increased, Mainly by Small and Medium-Sized Companies

Importation of Russian Diesel in Brazil by Small and Medium Distributors.

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