Petrobras Lowers Natural Gas Price Again and Alerts Consumers: Final Price Is Not Determined Solely by the State Company, but Also by Distributors and Federal and State Taxes

Natural Gas Prices For Distributors Will Be Lower In November. In The Case Of CNG, The Final Price For The Consumer Also Depends On Fuel Stations

Petrobras Informed In A Relevant Fact To The Market That, according to the contracts agreed upon by the state-owned company with the distributors, starting from 01/11/22, the updated selling prices of natural gas – transported and distributed through pipelines – will have an average reduction of 5% in R$/m³, compared to the August-September-October quarter.

According to the report, the contracts provide for quarterly updates and link the variation in gas prices to the fluctuations of Brent oil and the exchange rate. In this case, during the period, oil had a decrease of 11.5%; and the exchange rate had a depreciation of 6.5% (that is, the amount in reais to convert to a dollar increased by 6.5%).

As established in the contracts signed by Petrobras, the updated gas prices will remain in effect until 31/01/2023.

The state-owned company clarifies that the quarterly update of the natural gas price and annual for product transportation allows for the mitigation of momentary volatilities and relieves, in the final price, the impact of sudden and specific fluctuations in the external market, thus ensuring predictability and transparency for customers.

“The contracts are public and disclosed on the ANP (National Agency of Petroleum, Natural Gas and Biofuels) website”, says Petrobras in the statement.

Petrobras Warns Consumers That The Final Price Of Fuel Does Not Depend Solely On The Company

Petrobras emphasizes that the final price of natural gas to the consumer is not determined solely by the company’s selling price, but also by the margins of distributors (and, in the case of CNG, of resale stations) and by federal and state taxes.

Moreover, consumer tariffs are approved by state regulatory agencies, according to specific legislation and regulations. It is important to inform that the update announced for 1/11/22 does not refer to the price of LPG (cooking gas), packaged in cylinders or sold in bulk.