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Understand how Petrobras intends to apply different prices to 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), used primarily as cooking gas. The proposal has been under discussion since April 2024, after internal analyses indicated growth in industrial consumption of the product, as reported by the newspaper The Globe. 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 to residential use. If these auctions do not achieve the expected results, the company is considering applying a price differentiation between the residential and industrial sectors. This possible separation of values is still under study and will depend on technical and regulatory assessments.
Difference between refinery price and final value is worrying
In April 2024, Petrobras reported that the average price of a 13 kg gas cylinder at refineries was approximately R$36. However, according to a survey by the Brazilian Institute for Consumer Protection (Idec), some resellers sell the same cylinder for up to R$170 in certain regions of the country. The profit margins accumulated in the distribution and resale stages mainly explain this difference. Since the state-owned company does not regulate the final price, it has limited control over this process.
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Sale of Liquigás in 2020 reduced intervention capacity
Petrobras has lost an important channel of operation in the LPG distribution chain since it sold Liquigás in November 2020 to the consortium formed by Copagaz and Nacional Gás. The company itself made the sale during the divestment plan implemented under the management of Roberto Castello Branco. Without its own distributor, the company became entirely dependent on the market to deliver the product to consumers. This made it difficult to take more direct actions to moderate prices.
Price segmentation is not new
Brazil has already applied price segmentation between residential and industrial LPG before, especially in the 1990s. Petrobras' proposal now is similar: to establish different prices, if it is proven that industrial use is putting pressure on supply aimed at residential use. 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 evaluating other strategies to ensure balance in the LPG market. These include strengthening monitoring of the distribution chain, dialogue with the National Petroleum Agency (ANP), partnerships with the Ministry of Mines and Energy, and educational campaigns on 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 residential consumer
The company emphasizes that the priority continues to be the residential consumer, especially low-income families who depend most on cooking gas. The company's president reiterated this commitment in an interview given to TV Brasil in May 2024. According to her, all the measures analyzed aim to preserve the population's access to an essential resource in everyday life.
Technical reports will be presented to the government
Petrobras is expected to submit new reports to the Ministry of Mines and Energy in the first half of 2025. The documents will contain updated data on the LPG consumption profile by segment and should support proposals for public policies and possible regulatory adjustments. In addition, studies are being carried out with the support of the Energy Research Company (EPE), with the aim of ensuring greater transparency and predictability in the formation of cooking gas prices.
