At The End Of Last Year, Petrobras Informed Distributors That It Would Stop Importing Diesel S-10.
The previous practice was that when it was profitable to import, the distributors did so, after all, they are private companies aimed at providing profit for their shareholders. While the imports were causing losses, they were left to Petrobras, often selling at prices below the cost incurred when importing. Distributors would have an easier time passing on any cost increases to their customers since no politician can intervene with them.
The diesel market in Brazil is very concentrated, oligopolized, and only three companies hold over 70% of the market since new distributors do not focus much on large consumers, who represent about 30% of the total.
Video: What Is Diesel S-10 and What Makes It Different
Distributors may have miscalculated the demand forecasts for diesel S-10 in February and March since they were accurate in January. Sales of diesel S-10, comparing January 2021 with January 2022, increased by 8.5%, from 2.59 thousand M3 to 2.81 thousand M3 (an increase of 0.22 thousand M3).
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The largest fuel distributor in Brazil has just been forced to import diesel and gasoline on its own after Petrobras reduced its monthly deliveries.
Meanwhile, imports of this product increased by 76%, from 0.79 thousand M3 to 1.39 thousand M3, an increase of 0.60 thousand M3. In January 2022, Petrobras refineries processed 5.8% more oil than in January 2021, which does not necessarily mean that they produced more diesel S-10, after all, the HDT units are at capacity, and they will only get out of this situation in 2023.
The chaos in February and March may also be a consequence of stock variations, but we will only be able to affirm anything after the data from February and March is released.


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