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Petrobras Considers Separating Prices of Residential and Industrial LPG to Improve Balance in the Cooking Gas Market

Written by Caio Aviz
Published on 07/05/2025 at 16:52
Cilindros de gás residencial e industrial com manchete sobre separação de preços pela Petrobras
Imagem ilustrativa mostra botijões de gás residencial e industrial com destaque para a decisão da Petrobras sobre a separação de preços no mercado de GLP.
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Understand How Petrobras Plans to Apply Different Prices for Cooking Gas Used by Homes and Industries, and What Measures Are Being Analyzed

Petrobras is evaluating the adoption of a segmented pricing policy for liquefied petroleum gas (LPG), primarily used as cooking gas. The proposal has been discussed since April 2024, after internal analyses indicated growth in industrial consumption of the product, as reported by the newspaper O Globo. The main objective of the change is to ensure that supply for residential use continues to be prioritized. The increase in consumption by companies has caused imbalances that directly affect the prices paid by end consumers.

The Government Started Auctions as a Temporary Measure

As an initial response, Petrobras began specific LPG auctions in May 2024 to try to contain the pressure from industrial demand. According to Agência Brasil, the government planned the measure as a way to direct part of the supply for residential use. If these auctions do not achieve the expected results, the company is considering implementing a price differentiation between the residential and industrial sectors. This potential separation of values is still under study and will depend on technical and regulatory assessments.

Difference Between the Refinery Price and the Final Value Is Concerning

In April 2024, Petrobras reported that the average price of a 13 kg gas cylinder at the refineries was approximately R$ 36. However, according to a survey by the Brazilian Institute of Consumer Defense (Idec), some resellers sell the same cylinder for up to R$ 170 in certain regions of the country. The accumulated profit margins in the distribution and resale stages primarily explain this difference. As the state-owned company does not regulate the final price, it has limited control over this process.

Sale of Liquigás in 2020 Reduced Intervention Capacity

Petrobras lost an important channel of action in the LPG distribution chain since it sold Liquigás in November 2020 to the consortium formed by Copagaz and Nacional Gás. The company conducted the sale during the divestment plan led by Roberto Castello Branco’s management. Without its own distributor, the company became entirely dependent on the market to deliver the product to the consumer. This has made more direct actions to moderate prices difficult.

Price Segmentation Is Not Unprecedented

Brazil has previously applied price segmentation between residential and industrial LPG, especially in the 1990s. Petrobras’s current proposal is similar: to establish distinct values if it is proven that industrial use is pressuring supply intended for homes. In statements made to the press in April 2024, the current president of Petrobras, Magda Chambriard, stated that the differentiation is under evaluation, but that any decision will depend on technical and legal analysis.

Complementary Measures Are Being Evaluated

Petrobras is also assessing other strategies to ensure balance in the LPG market. Among them are enhanced monitoring of the distribution chain, dialogue with the National Agency of Petroleum (ANP), partnerships with the Ministry of Mines and Energy, and educational campaigns about the use and pricing of LPG. These actions are being developed based on internal reports and in compliance with regulatory and market guidelines.

Focus Remains on the Residential Consumer

The company emphasizes that the priority remains the residential consumer, particularly low-income families that depend most on cooking gas. The company’s president reiterated this commitment in an interview with TV Brasil in May 2024. According to her, all measures being analyzed aim to preserve the population’s access to an essential resource in daily life.

Technical Reports Will Be Presented to the Government

Still in the first half of 2025, Petrobras is expected to present new reports to the Ministry of Mines and Energy. The documents will provide updated data on the consumption profile of LPG by segment and should support proposals for public policies and potential regulatory adjustments. In addition, studies are being conducted with the support of the Energy Research Company (EPE), aiming to ensure greater transparency and predictability in cooking gas price formation.

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Caio Aviz

Escrevo sobre o mercado offshore, petróleo e gás, vagas de emprego, energias renováveis, mineração, economia, inovação e curiosidades, tecnologia, geopolítica, governo, entre outros temas. Buscando sempre atualizações diárias e assuntos relevantes, exponho um conteúdo rico, considerável e significativo. Para sugestões de pauta e feedbacks, faça contato no e-mail: avizzcaio12@gmail.com.

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