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The Brazilian Institute of Petroleum and Gas (IBP) supports the regulatory improvement of distribution and resale activities of derivatives and biofuels. However, the Institute is cautiously assessing the changes established by ANP Resolution No. 858/21 and proposals still in MP 1063/21 and MP 1069/21 which, among other aspects, allow a flagged gas station to sell fuel from a supplier other than the commercial brand that displays.
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The justifications and objectives presented for the alterations are not feasible. Final consumer fuel prices will not be reduced and competition in the sector will not be stimulated. On the contrary, measures carry risks, especially for customers. The norm brings fragile requirements, which do not guarantee the real origin of the product, injure the right of the brand and the consumer, and create legal uncertainty for investments.
Currently, there are 42 retail outlets across the country. Almost half of these, called “white flag”, do not show the consumer a trademark associated with a distributor, and can therefore sell fuel from any supplier. The other part of resellers, the “branded stations”, chose to bear the trademark of a distributor and benefit from the advantages of linking their business to a renowned brand: marketing plans, customer loyalty, training, network identity.
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Confusion between suppliers, market and customers
The possibility of selling fuel from other suppliers at flagged stations will certainly confuse the market and the consumer, who chose to fill up at a certain station by the brand, but may purchase a product from another source. Consumers will not know the true origin of the product sold, as the Resolution does not require that fuel from different sources be stored in different tanks, allowing the mixture of purchased products and making any traceability unfeasible. In addition, there is no obligation to differentiate the pumps from the service stations and just providing information by means of a simple sticker is not enough to guarantee that the consumer's choice is preserved.
Consumer risks were also pointed out by the Brazilian Institute of Consumer Policy and Law – Brasilcon – in a recent technical note. The document reinforces that the changes in the sale of derivatives seek free competition, but without assessing issues such as consumer protection with regard to the quality and safety of the products and services offered. Brasilcon recalls that the Federal Constitution treats consumer rights as a fundamental right, and it is the role of the State to establish norms that effectively protect consumers, alerting to the “defect of unconstitutionality” of Provisional Measures.
The new rule has no parallel in other sectors and in other countries, and could intensify irregularities, since it makes inspection more complex and increases regulatory costs, in addition to inhibiting investments.
The IBP supports the development of the industry towards an increasingly open and competitive market, but developments in the sector must be guided by legal and operational security, predictability for investors, effective supervision and protection of consumer interests.
Note Authorial Source: IBP
