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Sale of kitchen gas grows in Brazil and can cost up to R$ 200 to the consumer's pocket still in 2021

Written by Flavia Marinho
Published 15/01/2021 às 08:49
COOKING GAS - PRICE - LPG - PETROBRAS

In 2020, the commercialized volume of cooking gas (LPG) increased by 5,3%, and this year, according to Asmirg, it could reach R$ 200, in a drastic hypothesis  

Petrobras reported in a material fact last night (14/01) that the increase in domestic demand for cooking gas, due to the social distancing scenario, resulted in a 5,3% increase in LPG consumption for 13 kg cylinders in 2020 . A law is sanctioned to penalize theft, theft or reception of fuel in Rio de Janeiro

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According to Petrobras, the movement occurred in the opposite direction to that of other fuels, impacted by the mobility restrictions imposed by COVID-19 and the consequent economic downturn. The data can be consulted on the Dynamic Panel of the Brazilian LPG Market on the Market page.

The price of cooking gas – LPG in Brazil

The president of the Brazilian Association of Liquefied Petroleum Gas Dealers (Asmirg), Alexandre Borjaili, estimates that the price of cooking gas sold to Brazilians could reach R$ 150 – or even R$ 200, in a drastic hypothesis – in this year.

Over the past 14 years, the price of cooking gas cylinders has fluctuated between 6% and 8,7% of the current national minimum wage. In 2007, this percentage was 8,7%. In 2019, the price of the cylinder represented 6,9% and, in 2020, it was equivalent to 6,7% of the minimum wage, on average.

Data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) updated last Monday (11/1) indicate that, on average, the consumer pays R$ 75,04 for a 13 kg cylinder. At the maximum, the value reaches R$ 105.

In January last year, the average gas cylinder was R$69,74 – there was an increase of 7,6% in the period, without considering inflation. To give you another idea, in the first month of 2017, cooking gas – LPG was found at R$55,61.

Petrobras' pricing policy

Petrobras' sales prices to distributors, as well as their dynamics linked to variations in international quotations and the exchange rate, account for only a portion of the price to the final consumer, although variations in the price of cylinders are almost always attributed exclusively to Petrobras.

In 2020, Petrobras' share in the final consumer price corresponded, on average, to 39% of the value observed at the points of sale. In addition to the cost of cooking gas - LPG in the company's refineries, the sale price of the cylinder includes state and federal taxes (weight of 18%, on average, in 2020), as well as the coverage of costs and remuneration of distributors and of cooking gas resellers (43% on average in 2020).

The prices practiced by Petrobras are based on import parity quotations and, therefore, follow changes in the value of the product in the international market and in the exchange rate. Reflecting such oscillations, Petrobras promotes both increases and reductions in its prices.

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact flaviacamil@gmail.com for suggestions, job openings or advertising on our website. Do not send your resume, we are not hiring!

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