Brazil Gasoline Troubles: On Friday, Brazil’s Minister of Mining and Energy, Alexandre Silveira, claimed the country’s biggest economy won’t run out of gas despite gas station troubles. This is true even if some gas station operators have reported issues. Silveira oversees Brazilian energy and mining policies. Silveira claimed this despite other gas station owners’ complaints.
Silveira told a reporter that only Petrobras (PETR4.SA) can manage oil prices. The state-owned oil business switched from market-driven to flexible pricing to cut diesel and gasoline prices. This enabled the company compete with global price changes. The corporation reduced gasoline and fuel prices. This helped the company compete with global prices. This tactic decreases imports from non-corporation enterprises, worrying industry experts.
StoneX, a consultancy firm, blames Petrobras’ pricing for several Brazilian states’ gasoline shortages. Petrobras hiked product pricing, prompting the comment. StoneX‘s comment after a review. The statement also noted that the country’s oil processing capacity cannot satisfy market demand. The statement mentioned this. Due to prior discussion, this was raised.
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Fecombustiveis, the gas station trade organization, said wholesalers have been limited in what they can offer, but there have been no shortages. The association did indicate dealers’ sales had been constrained. They stressed the abundance of products. Everyone knew vendors had problems procuring merchandise, therefore this was brought up. Brasilcom, an oil distributor, said shortages were rare and localized. Brasilcom stated these lapses were rare.
Petrobras responded by repeating that it is honoring its contracts by paying distributors. The reply was a response to the proclamation. Petrobras kept these promises as written in its contracts. The company stated that they have always operated this way because they believe offering a range of fuel options best serves the local market. They say this is why they’ve always done business.
Concerned about fuel shortages, many called the ANP, which manages oil. Fuel shortages worried them. ANP replied that it is unaware of any diesel or refined commodities shortages. This was said in present tense. Diesel stockpiles are still considered good by the American Petroleum Institute. It also stressed the importance of imports to US fuel use. The ANP also indicated fuel supplies are sufficient.
Our Reader’s Queries
Why are gas prices so high in Brazil?
Petroleo Brasileiro SA, the state-controlled oil company of Brazil, has increased the prices of domestic fuel to bridge the cost gap with international markets. This decision is expected to accelerate inflation, but it will also please investors. By taking this step, the company aims to align its prices with global standards and improve its profitability. However, this move may have an adverse impact on the common people who will have to bear the brunt of higher fuel prices.
What is the source of ethanol in Brazil?
Brazil’s ethanol production is heavily reliant on sugarcane as its primary feedstock. The first-generation technologies used in this process are based on extracting the sucrose content of sugarcane. This method has been the go-to for ethanol production in Brazil for quite some time.
What percentage of cars in Brazil run on ethanol?
Despite only seeing a slight increase in sales compared to the previous year, FFVs (flex-fuel vehicles) introduced in Brazil in 2004 still dominated the market with an impressive 83% share of total car sales in 2022. These cars run on ethanol fuel, making them a popular choice among environmentally conscious consumers.
How much does gas cost in Brazil?
The latest update on gasoline prices shows that it is currently at 1.16 USD per liter. This information is relevant for those who are keeping track of fuel costs and budgeting for their transportation expenses. It is important to stay informed about the fluctuating prices of gasoline in order to make informed decisions about fuel consumption and expenses.