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Petrobras bets on green diesel and wants to sell it cheaper than biodiesel

Written by Flavia Marinho
Published 16/09/2021 às 16:12
Updated 19/08/2022 às 05:07
diesel - price - gasoline - petrobras - fuels - biodiesel
Diesel Petrobras – gas station / Google Image

Green diesel production is tested at a refinery in Paraná (Repar). Petrobras claims regulatory opening to compete for market with biodiesel producers

The oil company Petrobras is betting on selling its HVO diesel oil at a more competitive price than the biodiesel currently added to fossil diesel to be sold at retail stations. The HVO is a 'green' version of Petrobras diesel, produced from vegetable oils.

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“Because it is a more complex (HVO production) process, there is a competitive advantage in the raw material, especially if you consider the carbon capture, greater than that of biodiesel, throughout the cycle”, said Sandro Barreto, manager of Marketing at the state-owned company, during a virtual event promoted by the Getúlio Vargas Foundation (FGV).

According to Petrobras, due to the technology adopted, the state-owned company can choose a greater diversity of raw materials, including the cheapest ones. The oil company tested the production of HVO at its refinery in Paraná (Repar).

At first, it started to generate 95% and 5% 'green' fuel, but this proportion could be increased, according to Barreto.

Petrobras has been claiming regulatory opening to dispute the market with agribusiness biodiesel producers, who, however, do not recognize HVO as equivalent to their fuel.

Fuel war: BR and Shell overthrow Fit group after distributor harasses resellers with approved MP that drops loyalty to the brand at gas stations

Provisional Measure 1063, by President Jair Bolsonaro, which frees flagged fuel stations to sell gasoline from different distributors was barely approved and has already generated war between cartels of fuel distributors! Fit Group Combustíveis (a distributor linked to the former Manguinhos Refinery, which today operates under the trade name Refit), tried to take advantage of the MP and ended up prohibited from harassing, enticing, offering and distributing products to retail stations contractually linked to Raízen's Shell flag, and BR Distribuidora, which now goes by the name of Vibra Energia.

The determination for the Shell station was issued by Judge Miguel Ferrari Junior, of the 43rd Court of the Central Civil Forum of São Paulo, in the preliminary decision dated 27 August. In case of non-compliance by companies belonging to Fit, a fine of R$ 10 will be applied. Appeal is possible.

In Rio, in addition to prohibiting Fit from enticing service stations, the judgment also determined that the company refrain from using BR's visual identity in its sales material at service stations, under penalty of a daily fine of 1 million reais. Fit, which belongs to the same group that controls Refit (formerly Manguinhos), declined to comment on the matter.

End of brand loyalty at fuel stations and direct sale of ethanol from plants are approved; measures promise to stimulate competition and curb the increase in gasoline prices

Direct sale of ethanol and the end of loyalty to the brand at approved fuel stations promise to put an end to the cartel, stimulate competition and lower the price of gasoline, which has been suffering consecutive spikes.

A Provisional Measure to allow mill owners to sell ethanol directly from the plant to gas stations was approved by the Government on Wednesday morning (11/08), and may become the 'solution' to contain and curb the rise in gasoline prices .

The text also establishes a white flag for gas stations, that is, it allows gas stations that display brands from a specific distributor to start selling fuel from other suppliers, as long as the consumer is informed. Lread the full article by clicking here.

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Flavia Marinho

Flavia Marinho is a Production Engineer with a postgraduate degree in Electrical Engineering and Automation, with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses, with over 7 thousand articles published. Her technical expertise and communication skills make her a respected reference in her field. Contact us to suggest topics, advertise job openings or propose advertising on our portal.

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