Gasoline price drops for the eighth week in a row – 10/20/2023 – Market

The average price of gasoline at Brazilian stations fell by R$0.02 this week, to R$5.74, according to the ANP (National Agency for Petroleum, Gas and Biofuels). It was the eighth consecutive week of decline and the trend is expected to continue with the cut in Petrobras refineries starting this Saturday (21).

In these eight weeks, the accumulated decline is R$0.14 per liter. Petrobras estimates an additional transfer of R$0.09 per liter after the price reduction at refineries. Paranapetro, the union that represents stations in Paraná, speaks of R$0.08 per liter.

The downward cycle after the increase promoted by Petrobras in August reflects the decline in prices for anhydrous ethanol, which represents 27% of the mixture sold at stations, and cuts promoted by the largest private Brazilian refinery, the Mataripe Refinery.

Controlled by the Arab fund Mubadala, the company follows international fuel prices more closely and reduced the price three times at its main delivery point during the month of October.

The drop in gasoline should help take inflation below the tolerance limit of the target established by the Central Bank for 2023, of 4.75%. After the announcement of the adjustments this Thursday, analysts revised their projections.

This week, the ANP found the cheapest regular gasoline in the country in Limeira (SP), at R$4.75 per liter. The most expensive was found in the capital of São Paulo, at R$7.59. Maranhão had the lowest average price (R$5.50) and Acre, the highest (R$6.77).

According to the ANP, the average price of S-10 diesel fell by R$0.02 per liter this week, to R$6.18 per liter, in a sign that distributors and stations are delaying the transfer of the end of tax collection federal taxes on fuel, which would represent a transfer of R$ 0.11 per liter.

Since the end of the provisional measure that had reestablished tax collection, the accumulated drop is just R$0.04 per liter.

This Saturday, Petrobras increases the price of diesel in its refineries by R$0.25 per liter, claiming that the market continues to be affected by the reduction in stocks in recent months and is pressured by the proximity of winter in the Northern Hemisphere, which increases the use of heating.

The price of hydrated ethanol, which competes with gasoline, remained stable at R$3.61 per liter, according to the ANP’s weekly price survey.