Petrobras Raises Cooking Gas And Gasoline Prices Starting This Saturday (09); Consumers Turn To Wood Stoves

Petrobras Will Once Again Adjust the Price of Gasoline and Cooking Gas (LPG). All of its distributors will have to adjust prices according to the percentage of the new increase, which will be 7.2% for each product. Poorer families have replaced cooking gas with wood stoves, despite the risks    

According to Petrobras, the average price of gasoline will increase from R$ 2.78 to R$ 2.98 per liter, resulting in an average adjustment of R$ 0.20 per liter. Regarding the mandatory blend of 27% anhydrous ethanol and 73% gasoline A, which makes up the gasoline sold at fuel stations; the pump price of gasoline will be R$ 2.18 per liter on average, which means an increase of R$ 0.15 per liter. Petrobras has not yet announced the adjustments for other fuels. At the end of September, Petrobras adjusted the price of diesel by 8.89%. According to data from the IPCA (National Consumer Price Index) released by the IBGE, in the last 12 months up to September this year, gasoline prices rose by about 39.6% in the country, and cooking gas (LPG) spiked by about 34.67%.

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Petrobras Justifies Its Price Adjustments

The state-owned company reported that the adjustment to cooking gas prices did not occur again after 95 days since the last adjustment made, which kept prices stable during that period.

For gasoline A, there were 58 days of price stability, according to Petrobras. The company also stated that the increase in prices follows international parameters for the price of oil.

For Petrobras, these adjustments are crucial to ensure that the market continues to be supplied, regarding economic fundamentals, and to prevent any risk of supply shortages from suppliers responsible for servicing Brazilian regions.

High Oil and Dollar Levels Contribute to Increased Cooking Gas and Gasoline Prices

There are several factors contributing to the increase in fuel prices, but the main one is the high dollar value. The dollar and oil pricing are increasingly influencing the prices of key fuels in Brazil since 2016, when the company started applying the International Price Parity (IPP), which is based on international market fluctuations.

On last Thursday (7), the price of Brent crude oil, the international benchmark, closed above at US$ 81.95, surpassing the last high price seen at the end of 2018. Earlier this year, the average price was well below US$ 65.

Consumers Desperate from Rising Cooking Gas and Gasoline Prices Resort to Wood Stoves

Many consumers have already felt the impact of the increases in gasoline and cooking gas (LPG) prices. Many families, especially the poorer ones, have turned to wood stoves to save on cooking gas.

Some of them no longer have cooking gas at home. The fact is that there are various dangers associated with wood stoves and ovens, but unfortunately, there is no other alternative. Consumers are currently having to accept these price increases.