1. Home
  2. / Uncategorized
  3. / Petrobras Distribuidora Considers Creating Company To Enter Ethanol Market
Reading time 2 min of reading

Petrobras Distribuidora Considers Creating Company To Enter Ethanol Market

Written by Paulo Nogueira
Published on 12/08/2019 at 01:00
Updated on 12/08/2019 at 08:05
Petrobras Distribuidora
Be the first to react!
React to this article

Petrobras Distribuidora Plans to Operate in Ten Areas to Attempt to Achieve Profitability Comparable to That Obtained by Private Sector Competitors

Petrobras Distribuidora could create a new company to enter the ethanol sector. Within the state-owned subsidiary, a working group is already operating that has defined ten areas for the company to regain profitability comparable to that of private sector competitors.

In addition to ethanol, another development is the entry into the fuel trading segment. BR Distribuidora would purchase them from different suppliers, including abroad, and could sell them even to competitors.

Furthermore, the distributor aims to expand the production capacity of its lubricants factory. The goal is to reach an additional 15 million liters per month, increasing from the current 27 million liters per month to 42 million liters in 2022.

As the foundation for this new line of activity, Petrobras’ distributor is analyzing the possibility of creating a company to operate in the ethanol segment. The working group outlining these new operational areas for the company consists of directors and managers.

Another area would be the creation of a proprietary payment system to allow for greater customer loyalty. According to the president of BR Distribuidora, Rafael Grisolia, the ten modernization measures are already underway.

Among the measures that the fuel distribution company must take are: cost cuts, efficiency gains, entry into new businesses, and exit from others.

One example of this change program is the alteration of the product pricing system. A segmented model by microregion will be adopted. The company will differentiate prices by customer, depending on location and volume consumed.

Additionally, convenience stores at BR Distribuidora gas stations will also need to be expanded. According to company executives, convenience is one of the pillars of the company’s growth.

Petrobras’ distributor suffers from the profitability gap compared to its main competitors in the private sector.

Even controlling the largest share of the petroleum derivatives market in Brazil, BR Distribuidora does not have the best profitability. Competitors like Raízen (owned by Shell and Cosan), or Ipiranga (from the Ultra group), show better financial results.

Ethanol Storage Tank Explodes at Plant in the Interior of São Paulo

Tags
Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

Share in apps