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The return of one of the world's largest fuel brands to Brazil has suffered an unexpected setback: a million-dollar legal debt threatens to jeopardize expansion plans and leaves investors on alert about Texaco's next steps in the country.
Texaco's attempt to make a strong comeback in the fuel sector in Brazil has come up against a long-standing legal dispute involving a million-dollar debt with a lubricant distributor in Bahia.
The 3th Superior Court of Justice (STJ) Panel decided, unanimously, to maintain the conviction of the company, demanding the payment of approximately R$60 million to MLub, the company that exclusively operated the resale of the brand in the states of Bahia and Sergipe.
The STJ decision represents yet another obstacle in the strategy of repositioning the Texaco brand in Brazil, which was officially resumed in October 2024 with the opening of a post in Palhoça, Santa Catarina.
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The brand's expectation was to return with full force, especially in the South and Southeast regions, where it planned to open dozens of new stations in the following months.
However, to date, no other post has actually been opened.
Texaco left Brazil in 2016, after more than 100 years of operations in the country, ending its activities in the gas station segment.
Since then, the brand's management in the national territory has been the responsibility of Iconic Lubrificantes, a joint venture formed by the giants Chevron and Grupo Ultra – the latter controlling the Ipiranga gas station network.
The new venture sought to restore the brand's importance in the minds of Brazilian consumers, betting on a strategic repositioning to face established competitors such as Petrobras, Shell and Ipiranga itself.
Contractual conflict with Bahian company reignites legal dispute
According to court documents, MLub accused Texaco of break the exclusivity contract signed for the resale of lubricants in the states of Bahia and Sergipe, signing parallel agreements with other distributors and selling directly to customers in the region, which caused operational and financial losses to the Bahian company.
The Bahia Court had already recognized the breach of contract in two previous instances.
The decision now ratified by the STJ solidifies the obligation of Texaco and its controlling companies – Chevron and Grupo Ultra – to compensate MLub for the damages caused, further increasing the legal complexity surrounding the return of the flag to Brazil.
The value of the compensation, estimated at around R$60 million, represents not only a financial setback, but also an impact on the brand image among future partners and franchisees.
According to industry sources, the legal impasse has scared away potential investors interested in associating their operations with the Texaco brand.
Return to Brazil: strategy stalled due to lack of support
Even with the effort to reposition the brand in the country, Texaco faces practical difficulties in expanding its network.
After the launch of the first station in Santa Catarina, no new units have been opened yet, reflecting the market’s lack of confidence in the stability of the brand’s operations in Brazil.
According to fuel sector experts, the Brazilian market is increasingly competitive and demanding, which requires companies to have a high degree of legal and reputational predictability.
Court rulings, combined with a lack of clarity regarding the security of future contracts, have become a limiting factor for new partners joining the brand.
We also pack any the presence of well-established brands makes it difficult for Texaco to recover, which needs to compete not only on price and quality, but also on trust.
In recent years, Brazilian consumers have become more concerned about the origin of fuels and the transparency of brands — a factor that can weigh against companies involved in litigation.
Chevron and Ultra Group remain silent on next steps
Iconic Lubrificantes, the company responsible for managing the Texaco brand in Brazil, has not yet officially commented on the STJ's decision.
No new plans for expanding the network or alternatives to circumvent the impacts of the court ruling were announced.
Chevron and Grupo Ultra, the controlling companies of Iconic, avoid public statements about the process, which reinforces the climate of uncertainty surrounding the future of the Texaco brand in the national territory.
According to analysts, the lack of institutional positioning could increase legal uncertainty and further hinder negotiations with potential franchisees.
The situation raises questions about the viability of the project to revive the brand in the country.
Although the market potential is significant — Brazil is among the largest fuel consumers in the world — the scenario of legal instability represents a real threat to the continuity of Texaco's plan.
History of presence and departure from Brazil
Founded in 1901 in the United States, Texaco operated for decades in Brazil with a strong presence in the fuel and lubricants sector.
In the 2000s, the company underwent a series of international restructurings that culminated in the merger with Chevron, which also ended up influencing its business strategy in Brazil.
In 2008, Texaco sold its network of gas stations to Grupo Ultra, which integrated the assets into the Ipiranga network.
Since then, the brand has survived in the country only in the lubricants sector, through Iconic.
It was only in 2024 that the possibility of reactivating the stations under the Texaco flag was envisaged, in a movement that is now compromised by the legal dispute.
Businesspeople in the sector analyze the brand's future in the country
Fuel sector executives interviewed by specialized portals state that, Despite the historical value and international strength of the Texaco brand, returning to the Brazilian market will be difficult without the definitive resolution of legal liabilities.
Furthermore, the current scenario of controlled inflation, but with high competition, requires agile actions and well-structured loyalty strategies.
The STJ decision is seen as a watershed, as it may influence other ongoing legal actions involving Texaco or its controlling companies.
There is also a risk that new companies could allege similar breaches of contract, which would further increase pressure on Iconic and its partners.
As it tries to rebuild its operations, Texaco faces a central challenge: regaining the trust of the Brazilian market amid an image crisis and high-value legal disputes.
And you, do you think Texaco still has space in Brazil's competitive fuel market or has the brand missed the boat?
