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Gasoline and diesel prices may advance further with supply cuts by Petrobras

22 October 2021 to 13: 42
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Gasoline - gasoline price - ethanol - Petrobras - diesel
Vehicle refueling — Photo: Custódio Coimbra/Agência O Globo

Association representing fuel distributors intends to import gasoline and diesel, but uncertainty about Petrobras' next steps has left businessmen fearful  

On Monday (11), Petrobras informed fuel distributors that they will have cuts in fuel supply orders, mainly gasoline and diesel oil. Such a decision, without a shadow of a doubt, could cause a serious shortage in several Brazilian service stations. According to the company, the cuts made would be a reflection of the shortage of the listed fuels, as the demand for gasoline and diesel increased by around 20%.

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Petrobras' reduction in the supply of fuels could mean shortages at several stations across Brazil

Petrobras is primarily responsible for supplying more than 40 fuel distributors throughout Brazil. Faced with this issue, some of these distribution companies claimed that the reduction proposed by Petrobras would represent the total commitment of a large part of the supply, that is, such a decision could cause a partial or total lack of fuel at the filling stations.

Petrobras' decision may lead distributors to resort to importing gasoline and diesel oil, so as not to be at a loss

Faced with this situation, the companies belonging to the Association of Fuel Distributors, also known as Brasilcom, will have to resort to an 'escape valve' so as not to be at a loss and not run the risk of temporarily closing or even going bankrupt due to the lack of supply of fuels.

The solution to this case would be to import both gasoline and diesel oil from foreign countries. However, if they choose to import both fuels, the consequences, according to the association itself, is an increase in the price of gasoline and diesel oil, something that would result in an even more expensive readjustment for the consumer.

Importing fuels will make the value of gasoline and diesel at the pump even more expensive, reports Brasilcom

Brasilcom explains that the consequence of importing gasoline and diesel oil will reflect 100% of the final value of the sale and resale of fuels, since, according to the importers themselves, gasoline and diesel oil are being sold abroad with the value around 17% above local products.

According to the association, the National Petroleum Agency (ANP) would have already been communicated in advance about this problem, through messages sent via e-mail, by the distributors.

Brasilcom considers that the importation of fuels has become a matter of business, through a decision by Petrobras, and that the importation of gasoline and diesel oil will happen by decision of each distribution company, as this was the only alternative found so far, however, not is mandatory and it is not up to the association to express itself.

In a note, the National Federation of Trade in Fuels and Lubricants, Fecombustíveis, said that "for the time being there is still no reduction or lack of fuel at pumps at gas stations". The Director of the Brazilian Infrastructure Center (CBIE), Adriano Pires, said: “the whole problem in relation to fuel imports is uncertainty, as distributors still don't know if Petrobras intends to import as well. “

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