Fuel retailing became slightly less concentrated since 2014

A new report from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) points to a wave of diversification in Brazilian fuel retail market between 2014 and 2019. Nevertheless, the market remains highly concentrated in just a few players. Whether smaller companies can gain further share in the next few years remains a big question, even as international investors enter Brazil and Petrobras loses its refining monopoly. Diesel and ethanol, which have resulted in the most complaints recently, are the most concentrated segments. The four largest players (BR, Ipiranga, Raízen, and Alesat) had 67.4% of the gasoline market in 2019, from 74.2% in 2014, for instance. Regional chains like Atem’s, Equador, Royal Ficus, Taurus, Rodoil, and Ciapetro were the primary engines of market competition, bolstered by Petrobras policies to follow international price benchmarks, which opened importing opportunities.

Source: Valor International