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In Total Yearly Accumulated Increases, Cooking Gas Reaches 15.58% Passed Directly to the End Consumer
[supsystic-social-sharing id=’1′]Petrobras will raise the prices of bottled residential LPG in cylinders of up to 13 kg, cooking gas, by an average of 4.5% starting at midnight on Sunday (5), the state-owned company announced on Friday in a statement. According to Petrobras, if the adjustment is fully passed on to the consumer by distributors, the increase will be, on average, 2% or about R$ 1.21 per cylinder, “if distribution and resale margins and tax rates are maintained.”
“The adjustment was mainly due to the rise in product prices in international markets, influenced by external circumstances and the approaching winter in the Northern Hemisphere. The currency fluctuation also contributed,” the company explained in a statement.
The last adjustment occurred on October 11, when prices were adjusted on average by 12.9%.
In a statement, Sindigás, which represents the associated distributors, estimated that the increase in the price of the cylinder “will fluctuate between 4.2% and 4.7%, depending on the supply hub.”
An increase of over 15% year-to-date. The average price of cooking gas in the country has risen by 15.58%, according to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP). The average value of the cylinder for the consumer jumped from R$ 55.74 in January to R$ 64.42 in the week ending October 28.
Under the new pricing policy adopted by Petrobras since June, the price of Liquefied Petroleum Gas (LPG) will be reviewed every month.
Since June, Petrobras has announced five increases and one decrease for cooking gas. Check all announced revisions:
4/07: -4.5%
4/08: +6.9%
5/09: +2.2%
25/09: +6.9%
10/10: +12.9%
3/11: +4.5%
According to the state-owned company, the final price to distributors will be formed by the monthly average of butane and propane prices in the European market, converted into reais by the daily average of dollar selling prices, plus a margin of 5%.
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“As Brazilian law guarantees price freedom in the fuel and derivative market, the revisions made at refineries may or may not be reflected in the final price to the consumer. This will depend on adjustments made especially by distributors and resellers,” says Petrobras.
In the composition of prices to consumers, Petrobras accounts for about 34% of the final value, while another 19% are taxes, estimates the state-owned company. The remaining approximately 50% corresponds to distribution and resale costs. Source G1
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