Petrobras reaffirmed on Wednesday (8) the policy of international parity (PPI) to guarantee fuel supply in Brazil. According to the state-owned company, “prices below the market make the necessary imports economically unfeasible” and compromise market competition to serve the Brazilian consumer. The pricing policy has been adopted by Petrobras since 2016, when it started to equate domestic and foreign market fuel prices. “Prices aligned with the foreign market stimulate current production and competition, as well as encourage investments”, said the company. The company also said that the instability of diesel supply caused by the war in Ukraine, as well as the impact of the global economic slowdown in the pandemic, tend to boost even more the diesel market in the coming months. Brazil imported about 30% of its diesel demand in 2021 and has “historically higher consumption in the second half of the year due to seasonality in agricultural and industrial activities,” according to Petrobras.
Sources: Poder360/Nova Cana (*Translated by Ia Niani)