Diesel price drops another 3.5% at gas stations, says ANP – 02/17/2023 – Market

The price of diesel fell another 3.5% at Brazilian stations, with transfers of the cut promoted by Petrobras in its refineries at the beginning of the month, informed this Friday (17) the ANP (National Agency of Petroleum, Gas and Biofuels).

This week, diesel S-10 was sold, on average, at R$ 6.10 per liter, R$ 0.22 less than last week. It is the lowest value since the second week of March 2021, before the escalation caused by the mega-increases promoted by the state-owned company after the start of the war in Ukraine.

Since the week of the readjustment, the price of S-10 diesel at the pumps has dropped by 4.5%, or R$ 0.29 per liter. The drop in the price of diesel at pumps is celebrated by government allies, but industry data indicate that there is no room at this time for further cuts in refineries.

According to Abicom (Brazilian Association of Fuel Importers), the average price of diesel sold by Brazilian refineries was practically in line with international prices at the opening of the market this Friday.

There is a small delay of 1%, or R$ 0.04 per liter. In the case of gasoline, the average price practiced by Brazilian producers is 4%, or R$ 0.11 per liter, above the import parity, a concept that simulates how much it would cost to import the fuel.

At the stations, gasoline was practically stable this week, at R$ 5.07 per liter. Petrobras raised the price at its refineries at the end of January, even before the inauguration of President Luiz Inácio Lula da Silva’s nominee to preside over the company, Jean-Paul Prates.

According to the ANP, the price of ethanol also did not change this week, remaining at R$ 3.80 per liter. The sector complains that the product currently has little competitiveness and has been trying to prevent a new extension of tax relief on gasoline, which expires at the end of the month.

The same scenario was detected with the price of cooking gas, which was sold, on average, at R$ 107.77 per 13-kilogram cylinder.