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19.2% readjustment in natural gas sold by Petrobras to distributors affects piped gas and CNG, while government tries to contain impacts on cylinder gas with import subsidy
The price of natural gas sold by Petrobras to distributors rose 19.2% on Friday (1st), affecting piped gas used by residences and businesses, as well as CNG sold at gas stations.
Increase affects piped gas and CNG
The natural gas readjustment applies to distributors who purchase the product from Petrobras. The change affects piped gas delivered to homes and businesses, in addition to vehicular natural gas, known as CNG.
The increase does not include LPG, cooking gas sold in cylinders, which follows different readjustment rules. Even so, it has accumulated an increase of over 4% since the beginning of the war in the Middle East, on February 28.
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The increase contributes to inflationary pressure. The movement occurs amidst the effects of soaring oil and fuel prices, caused by the conflict between Iran and the United States.
Contracts foresee quarterly adjustment
Updates to natural gas prices are quarterly and are stipulated in the contract. The calculation considers the variation in global oil prices, the exchange rate, and, since the beginning of the year, the Henry Hub.
Petrobras states that the quarterly average of the indices aims to reduce the short-term volatility of the variables used in indexation. This mechanism guides the readjustment for distributors.
The amount charged to the consumer, however, does not depend solely on the gas molecule sold by the state-owned company. The final price includes other components until it reaches bills and pumps.
Final price includes margins and taxes
The paid amount includes transport, distributor margins, and federal and state taxes. For CNG, reseller station margins are also included.
Therefore, the readjustment announced by Petrobras alone does not represent the final percentage observed by users. The composition varies according to the sales chain and charges applied at each stage.
Government tries to contain impact on gas cylinders
For imported LPG, the government launched a measure to ensure sales in Brazil at the same price as the national product. The intention is to avoid higher price increases for the consumer.
A provisional measure opened an extraordinary credit of R$ 330 million to subsidize the import of cooking gas. The action is part of a package announced in early April, amidst rising international prices.
The package seeks to contain the impacts of the war in the Middle East on fuels. The conflict raised the international oil price, directly pressuring the cost of gas and transport.
With information from R7.
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