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Oil: Diesel Prices Drop in International Market While in Brazil Fuel is 14% Higher Than Abroad, According to Abicom Data

Written by Roberta Souza

Published on 09/08/2022 at 08:13

Updated on 09/08/2022 at 08:14

Oil and Gas

Foto: reprodução www.pexels.com

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Abicom States That The Drop In Oil Prices And The Weak Dollar Are Some Of The Reasons For The Diesel Price Stability In Brazil

With the oil prices falling and the dollar weak, the price of diesel in the Brazilian market is 14% above what is being practiced abroad, four days after the drop of R$ 0.20 per liter validated by Petrobras at its refineries, according to a survey conducted by Abicom (Brazilian Association of Fuel Importers) reported this Monday, 8. To achieve parity with international market prices, a reduction of R$ 0.64 per liter of diesel would be necessary, Abicom added, according to the Broadcast website.

Last Diesel Price Adjustment By Petrobras Took Effect Last Friday, 5

Petrobras implemented a reduction in the price of diesel in Brazil last Friday, 5. The adjustment represents a decrease of 3.5% in the price of the petroleum derivative and surprises analysts, as just a week earlier, the company’s directors stated that it was still early to change the diesel price, given the significant volatility in the global oil market.

The Brazilian oil company has a policy of changing prices only when there is a structural change in oil prices and not merely circumstantial. The oil sector has faced significant volatility, with consecutive rises and falls, while keeping the price of diesel below US$ 100 per barrel in recent days in Brazil and worldwide.

ARTICLE CONTINUES BELOW

Gasoline Prices In Brazil

Gasoline experienced two consecutive price drops validated by Petrobras at the end of July, totaling a decrease of R$ 0.35 per liter at Petrobras refineries. This Monday, 8, the price of fuel in Brazil is 8% higher than that practiced in the Gulf of Mexico, used as a reference by importers, with a difference of R$ 0.28 per liter.

The government has been pressuring Petrobras to reduce fuel prices. On Thursday, 4, President Jair Bolsonaro praised the drop in diesel prices and expressed hopes for further reductions by Petrobras, which still dominates the oil refining market in Brazil.

Acelen Is Controlling Fuel Prices More Closely Than Petrobras

Acelen, the owner of the Mataripe oil refinery, which was privatized at the end of 2021 and is responsible for about 14% of petroleum derivative supply in Brazil, has been making weekly adjustments to gasoline and diesel prices, thus tracking international parity more closely than Petrobras. The refinery price is only 5% above the parity of the foreign market, for both diesel and gasoline.

On Friday, Acelen reduced diesel prices by 7.5% in some markets, averaging prices below those practiced by Petrobras. The price of gasoline fell by 9% in specific markets, while others remained stable.

Variation In Diesel Prices Among Oil Companies

The increase in diesel prices has been occurring since July 2021, during which the prices passed to refineries were R$ 2.71, as seen below.

July/2021: R$ 2.81;

September/2021: R$ 3.06;

October/2021: R$ 3.34;

January/2022: R$ 3.61;

March/2022: R$ 4.51;

May/2022: R$ 4.91;

June/2022: R$ 5.61.

Oil: Diesel Prices Drop in International Market While in Brazil Fuel is 14% Higher Than Abroad, According to Abicom Data

Abicom States That The Drop In Oil Prices And The Weak Dollar Are Some Of The Reasons For The Diesel Price Stability In Brazil

Last Diesel Price Adjustment By Petrobras Took Effect Last Friday, 5

Gasoline Prices In Brazil

Acelen Is Controlling Fuel Prices More Closely Than Petrobras

Variation In Diesel Prices Among Oil Companies

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Oil: Diesel Prices Drop in International Market While in Brazil Fuel is 14% Higher Than Abroad, According to Abicom Data

Abicom States That The Drop In Oil Prices And The Weak Dollar Are Some Of The Reasons For The Diesel Price Stability In Brazil

Last Diesel Price Adjustment By Petrobras Took Effect Last Friday, 5

Gasoline Prices In Brazil

Acelen Is Controlling Fuel Prices More Closely Than Petrobras

Variation In Diesel Prices Among Oil Companies

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

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