Petrobras’ gasoline price gap rises againuel sold by state-owned company is up to R$0.49 cheaper than abroad
09/12/2023
/i.s3.glbimg.com/v1/AUTH_37554604729d4b2f9f3eb9ad8a691345/internal_photos/bs/2023/V/k/xea8RMRZCIB6cv4sBXlg/logistica-precos-99589687-ri-20-20rio-20de-20janeiro-20rj-2017-06-2022-20.jpg)
Petrobras last adjusted fuel prices on August 16 — Foto: Hermes de Paula/Agência O Globo
The difference in fuel prices charged by Petrobras in relation to the international market has increased as crude oil prices advance. Brent closed last week up 2.54%, at $90.03, after reports about global curbs on supply. On Monday, the price remained stable.
With the increase, the gap in Petrobras’ gasoline prices in refineries reached R$0.49 per liter on Monday, or 14.28%, according to the Brazilian Infrastructure Center (CBIE). A week ago, Petrobras’ gasoline prices were R$0.37 per liter below the international market, or 11.26%. According to CBIE, the difference was higher in diesel: it rose from R$0.39 per liter (9.38%) last week to R$0.69 (15.37%) on Monday.
According to the StoneX consultancy, the average gap in Petrobras’ prices in relation to the import parity price is R$0.23 per liter for gasoline and R$0.63 per liter for diesel. Calculations by the Brazilian Association of Fuel Importers (Abicom) indicate a difference of R$0.27 per liter for gasoline and R$0.74 for diesel.
Petrobras last adjusted fuel prices on August 16, when the state-owned company increased gasoline prices by 16.18% and diesel by 25.8%. The raise responded to international movements but was not enough to eliminate the lag over import parity. On the first day of new prices, the gap for gasoline was 9.6%, and diesel’s was 8.4%.
Concerns over global oil supply have driven up prices in recent days. Last week, Saudi Arabia and Russia announced the extension of voluntary cuts until the end of this year. The move reignited fears about global inflation and was the latest initiative by two of the world’s largest oil producers to raise prices.
Transneft, which compiles data on shipments of crude oil and fuels from Russia, reported on Friday that shipments from the country are expected to fall by 25% in September, which could reduce its exports to the lowest level since May. In Brazil, diesel has become more expensive since last week, when the government resumed charging the PIS/Cofins tax on fuel after fully waiving it since 2021.
“Petrobras’ new pricing strategy has made it more difficult to predict the movements by the state-owned company,” Itaú BBA analyst Monique Greco said. According to the bank’s calculations, the diesel price at Petrobras’ refineries would be close to the lower limit of the company’s marginal value, and gasoline would be 2% below. The marginal value is a price range within which the company can profit from selling oil products.
Ms. Greco said Petrobras has probably been waiting for the scenario to stabilize before changing domestic prices. She noted that the foreign exchange rate, which has recently risen, also adds to the equation. According to Itaú BBA, before the last change in August, refinery prices were 15% below the lower limit of the range for gasoline and 13% for diesel. Prices have been out of the range for three to four weeks.
*Por Kariny Leal — Rio de Janeiro
Source: Valor International