Cooking Gas Price at Ream Refinery, Formerly Reman, Is 37.1% Higher Than Prices Charged by Petrobras Refineries, Warns OSP

The Observatory Shows That The Privatization of The Former Reman, Now Ream, Has Caused Strong Impacts on The Values of The Products Marketed. The Cooking Gas Sold at The Refinery Currently Has The Highest Price in The Country, As Pointed Out by The OSP.

The data from The Social Observatory of Oil (OSP) for this Saturday, (04/02), point to strong impacts from the privatization of the former refinery Reman, now known as Ream, in The North of The Country. The cooking gas marketed by the asset is the most expensive in The Country, with a price 37.1% higher than that charged at Petrobras refineries. In 2022, consumption of the product fell sharply, as pointed out in the organization’s reports.

Recall: Petrobras Sells Refinery Reman to The Atem Group

OSP Warns About The High Price Charged for Cooking Gas at The Ream Refinery After The Privatization Process and Its Impacts on The Regional Fuel Market

The Social Observatory of Oil (OSP) is this week alerting the press and The National Fuel Market about The Current Scenario in The North of The Country.

According to the agency, the cooking gas sold at Ream, in Manaus, is the most expensive in Brazil, even exceeding the prices at Petrobras refineries.

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The price of the product is currently 37.1% higher than the gas sold by the state-owned assets, in addition to being 14% above that charged by The Mataripe Refinery, in Bahia, which is also private.

The privatization process of The Ream refinery, formerly Reman, caused a series of negative impacts on the marketing of the product in the state.

Before the sale of the asset, the 13-kilogram bottle of liquefied petroleum gas (LPG) was on average 0.8% cheaper than at other Petrobras refineries.

The OSP is maintained by The National Federation of Oil Workers (FNP), ensuring oversight of The Current Situation in The Oil and Natural Gas Market in Brazil.

“Since it was handed over to The Private Sector in December 2022, Ream has charged, on average, 29.5% more than Petrobras refineries and 10.4% more than The Bahia refinery, which has been operating under private management by Acelen since December 2021,” highlighted the agency.

During January, The Ream refinery sold the kilogram of liquefied petroleum gas (LPG), the cooking gas, for R$ 2.00 on average.

OSP Study Shows Decline in Cooking Gas Consumption Due to Price Increases, As Occurred at The Ream Refinery

The same reports that verified the high price of cooking gas at The Ream refinery also demonstrated the impacts of the product’s price increase in The Regional Market.

The OSP warns of a decline in cooking gas consumption in 2022, compared to the same period in 2021.

Between January and November of last year, the sale of LPG bottles fell by 3.01% in Brazil and 0.65% in The North Region.

In 2021, consumption had already dropped by 4.18%, with a reduction of 2.35% in The North of The Country, marking a constant decrease in the demand for the product as prices rose.

“Since 2021, families have been replacing cooking gas with firewood across The Country. With the privatization of Reman and the ensuing explosion in the price of LPG in The Region, this problem will worsen,” warns Eric Gil Dantas, economist at The OSP.

Since The Privatization of The Ream Refinery, The OSP has been alerting about the impacts on The Economy in The North of The Country. Now, the agency is seeking measures to mitigate The Current Situation of Cooking Gas Prices.