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Even With The End Of The Oil Monopoly, Private Refineries Face Obstacles To Access National Raw Material, Paying More And Losing Market Share, While Brazil Continues Exporting Crude Oil And Leaving Billions In Revenue Behind.
Even though Brazil is one of the largest oil producers in the world, it is experiencing a curious and concerning paradox.
While exporting millions of barrels of crude oil per day, local refineries struggle to purchase that same raw material, paying up to 15% more for imported barrels.
This imbalance represents a billion-dollar loss to public coffers, raises an alarm for the sector’s competitiveness, and reinforces the urgent need for structural reforms.
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Oil moves trillions worldwide, dominates energy generation, and continues to be a strategic resource for major global powers.
According to data from Refina Brazil, an association that represents seven independent refineries in the country, the lack of competitive access to national oil forces these companies to import up to 40% of the oil they process.
As a result, costs rise significantly while profitability decreases.
The president of the entity, Evaristo Pinheiro, estimates that regulatory and tax distortions cause losses of approximately R$ 30 billion per year to public coffers between federal, state, and municipal taxes.
The Monopolistic Structure That Resists Time
Although the state monopoly on oil was officially ended in 1997, Petrobras still dominates the production chain.
Today, the company accounts for more than 90% of oil production in Brazil and about 60% of the refined fuels market.
In practice, this keeps Petrobras as the main price setter in the sector, directly impacting the operations of independent refineries.
Even when there is interest in buying national oil, these refineries face difficulties.
According to Pinheiro, Petrobras often restricts the supply of oil to independents or, when it does offer, charges more than it does for its own refineries.
“Although we have ended the oil monopoly in Brazil, in practice it continues to exist,” he states.
The practice, considered anti-competitive, has already been the subject of analysis by the Administrative Council for Economic Defense (Cade), which reached an agreement with Petrobras.
The agreement provides for the sale of oil to private refineries, but without control over the prices charged, which maintains the economic barrier for the sector.
Discriminatory Pricing And The Mataripe Case
Refina Brazil claims that there is price discrimination by Petrobras.
According to the association, the state-owned company sells oil at lower prices to its own refineries while charging more from private competitors.
This behavior violates the principles of antitrust legislation, according to industry experts.
The most emblematic example is the Mataripe refinery in Bahia.
Privatized in 2021 and currently operated by Acelen, of the Mubadala Capital fund, it is the second largest in the country, with a refining capacity of 300,000 barrels per day.
Even so, it is forced to import almost half of the oil it uses.
In light of these challenges, shareholders have already considered selling the refinery back to Petrobras, in a turn of events that reveals the obstacles of the Brazilian regulatory environment.
The process has been brought to Cade by Acelen itself, which accuses the state company of distorting prices, but the case has been stalled for almost a year.
Tax Benefits Favor Exportation Instead Of Internal Supply
One of the most sensitive points of the debate lies in the taxation model of the oil sector.
According to experts and Refina Brazil, the formula used by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to calculate the “reference price” for exports distorts competition.
This calculation is based on Brent oil, with discounts applied to Brazilian oil, even when the pre-salt product has superior quality.
The result is that, when exporting to a subsidiary abroad, the oil company pays taxes on an artificially low value.
In the domestic market, taxation is based on the actual sale value, registered in the invoice.
This imbalance encourages exports and harms domestic supply and national tax revenue.
With the Tax Reform underway, the proposal to include the levy of the Selective Tax on the export of oil was removed by rapporteur Eduardo Braga (MDB-AM).
This measure displeased representatives of the local industry, who see taxation as a balancing mechanism.
“Taxing extraction and not exportation means generating jobs abroad,” criticizes Pinheiro.
The expectation is that the topic will return to the Congress agenda in April 2025.
Lack Of Structure Compromises Self-Sufficiency
Despite Brazil producing about 3.4 million barrels of oil per day — the eighth-largest production in the world — the country does not have the capacity to refine all that it extracts.
Refining infrastructure has grown by only 0.37% per year since 2014, increasing from 2.35 to 2.43 million barrels per day.
The current deficit is approximately 600,000 barrels daily, forcing the country to export this surplus due to lack of structure to process it internally.
It is a contradiction: crude oil is exported while gasoline and diesel, with higher added value, are imported.
Moreover, the country faces vulnerabilities in storage.
While the United States has the capacity to store 500 million barrels and China 200 million, Brazil has space for only 2 million.
This makes Brazil more exposed to international crises, such as blockades in the Suez Canal or the Strait of Hormuz.
Possible Paths And Solutions Under Study
Refina Brazil proposes that the Union take a more direct role in guaranteeing oil to private refineries through PPSA (Pré-Sal Petróleo S.A.).
The idea is to create long-term contracts with auctions promoted by PPSA, ensuring predictable and competitive access to Union oil.
The proposal is under discussion with the Ministry of Mines and Energy and the National Energy Policy Council (CNPE).
If implemented, the measure could revive investments in the refining sector and reduce dependency on imports.
According to projections from Refina Brazil, building refineries to meet the current deficit would generate 4,500 direct jobs and up to 40,000 temporary job positions during construction.
Additionally, the sector could generate R$ 80 billion in revenue and provide an additional R$ 20 billion in tax revenue.
“This is not about subsidies but creating equitable competition conditions,” highlights Pinheiro.
A Dilemma Between Potential And Practice
Brazil has oil but cannot fully leverage its natural resources.
The combination of outdated structure, poorly calibrated incentives, and market concentration hinders the development of a strong and competitive national refining industry.
With the discussions on Tax Reform and new energy policy guidelines underway, the moment is decisive.
The future of the sector depends on choices that balance economic interests, fiscal justice, and energy sovereignty.
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