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Why Is There Currently a Shortage of S-10 Diesel?

Written by Paulo Nogueira
Published on 02/04/2022 at 21:03
gasolina - diesel - gnv - combustível - petróleo - dólar - EUA
Frentista em posto de gasolina Petrobras – imagem Google
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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

YouTube video
Diesel S-10 Should Be Used In Which Vehicles? What Is Its Differential? – Source: Auto Papo

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).

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.

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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