Petrobras: Cade asks for explanation on pricing policy – 05/17/2023 – Market

Cade (Administrative Council for Economic Defense) asked Petrobras this Wednesday (17) for explanations about the change in its pricing policy. The request is part of an investigation that investigates abusive pricing in the sale of fuel.

Announced on Tuesday (16), the new commercial policy of the state-owned company abandons the PPI (import parity price), which simulates how much it would cost to import the products, but without establishing a new reference for calculating prices.

In a letter sent to the state-owned company, Cade requests clarification on the statement to the market published on Tuesday about the company’s new commercial strategy and a copy of documents that supported the company’s decision.

The inquiry into abusive prices was opened in January 2022, after readjustments in gasoline and diesel prices. At the time, Cade said that it is its responsibility to “follow the functioning of the markets to prevent and identify possible anti-competitive practices”.

Petrobras, however, questioned the investigation, which it called “unusual”, and says that issues related to prices had already been discussed in another procedure, which culminated in the agreement that determined the sale of the state’s refineries.

Only one large refinery, however, was sold, and the government of Luiz Inácio Lula da Silva (PT) has already announced that it will not only suspend the process but will also invest again in refining in the country, expanding Petrobras’ production capacity.

The state-owned company itself has said that one of the objectives of its new pricing policy is to conquer a lost market for private importers and other suppliers during the period of validity of the PPI, implemented in the Michel Temer government.

Importers and regional fuel distributors have been showing concern with the lack of clarity about the new policy. For them, the absence of a price reference disrupts the market and can reduce competition.

Smaller companies fear favoring the large fuel distributors that operate in the country, since Petrobras has been saying that it will be able to charge different prices for customers with large volumes and good credit.

A Sheet questioned the state-owned company about these possible impacts and how they should be mitigated, but still received no response.

Cade determined that the requested information be provided by Petrobras by June 1st. Otherwise, the company can be fined up to R$ 5,000 per day.