Diesel price stagnates after eight weeks of high – 09/29/2023 – Market

After eight consecutive weeks of increases, the price of diesel at Brazilian gas stations stopped rising, according to the ANP (National Agency for Petroleum, Gas and Biofuels). Next week, federal taxes on the product will be increased again.

According to the ANP, S-10 diesel was sold this week at R$ 6.22 per liter, the same value as the previous week. Since the beginning of the increase cycle, right after the readjustment in Petrobras refineries, the accumulated increase amounts to R$ 1.14 per liter.

Next week, the government promotes the second stage of the gradual resumption of federal taxes on the product, with an additional R$0.02 per liter. At the pumps, the market estimates a transfer of R$0.01 per liter, as part of the final price is made up of other taxes.

The sequence of increases in recent weeks reflects, in addition to Petrobras’ adjustments, the resumption of federal taxes and the increase in the cost of importing the product, which tends to worsen with restrictions on Russian exports.

Brazil imports around a quarter of its diesel consumption. This volume is mainly supplied by Russian diesel, which is cheaper than the American product and represented 70% of imports in August. Without this alternative, the market will have to look for more expensive sources.

This Thursday (29), the president of Petrobras, Jean Paul Prates, said that the company is still able to absorb the rise in international oil prices, without passing on domestic prices, but the market is beginning to expect new readjustments.

At the opening of the market this Friday (29), the diesel sold by the state-owned refineries was R$0.85 per liter below the import parity calculated by Abicom (Brazilian Association of Fuel Importers).

Despite this, Prates said that the state-owned company’s internal models indicate that “it is possible to maintain fuel prices at the same level without risks to profitability”.

According to the ANP, the price of gasoline at Brazilian stations fell again, reaching R$5.80 per liter, R$0.02 less than the previous week. With small weekly decreases, Brazilian gasoline is R$0.08 per liter cheaper than in the week after the Petrobras adjustment.

Still, it is R$0.29 per liter more expensive than before the adjustment. The price of hydrated ethanol remained stable, at R$3.64 per liter.