Kitchen Gas Sales Rise in Brazil and Could Cost Consumers Up to R$ 200 by the End of 2021

Written by Flavia Marinho

Published on 15/01/2021 at 08:49

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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 an important fact last night (01/14) that the increase in domestic demand for cooking gas, resulting from the social distancing scenario, led to a 5.3% rise in LPG consumption for 13-kilogram cylinders in 2020. A law has been enacted to penalize theft, burglary, or receipt of fuel in Rio de Janeiro

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According to Petrobras, the trend was contrary to other fuels, which were impacted by mobility restrictions imposed by COVID-19 and the consequent economic downturn. This data can be checked 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 Resellers (Asmirg), Alexandre Borjaili, estimates that the price of cooking gas sold to Brazilians may reach R$ 150 – or even R$ 200 in a drastic hypothesis – this year.

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The Pricing Policy of Petrobras

The selling prices of Petrobras to distributors, as well as its dynamics linked to variations in international quotations and exchange rates, account for only a portion of the final price to the consumer, although price fluctuations of the cylinder are almost always attributed exclusively to Petrobras.

In 2020, Petrobras’ share in the final consumer price averaged 39% of the observed value at resale points. In addition to the cost of cooking gas – LPG at the company’s refineries, the selling price of the cylinder includes state and federal taxes (averaging 18% in 2020), as well as cost coverage and remuneration for distributors and cooking gas resellers (43%, on average, in 2020).

The prices practiced by Petrobras are based on import parity quotes and thus follow variations in the product’s price in the international market and the exchange rate. Reflecting these fluctuations, Petrobras implements both increases and decreases in its prices.

Kitchen Gas Sales Rise in Brazil and Could Cost Consumers Up to R$ 200 by the End of 2021

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

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The Price of Cooking Gas – LPG in Brazil

The Pricing Policy of Petrobras

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Kitchen Gas Sales Rise in Brazil and Could Cost Consumers Up to R$ 200 by the End of 2021

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

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The Price of Cooking Gas – LPG in Brazil

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