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Home / brazil / High dollar pressure on gasoline, which has not been adjusted for more than 50 days – 11/18/2019 – Market

High dollar pressure on gasoline, which has not been adjusted for more than 50 days – 11/18/2019 – Market



The rising dollar puts pressure on the gasoline price in the country, which has been adjusted for more than 50 days and, according to experts, the international fuel prices have halted.

The market expects Petrobras to announce an increase in the coming days to cover the gap. Since 2016, the state's price policy has provided monitoring of international prices.

The last adjustment in the price of petrol sold by Petrobras was marketed on September 27, ending this Tuesday (19) 54 days. It is the largest unchanged series since the beginning of 2017.

The increase was 2.5%, reflecting the rise in prices last week when Saudi Arabia's largest refinery was attacked by drones, removing 5% of global production from the market.

On the adjustment day, the dollar closed at $ 4,166 per liter. Brent crude oil, an international reference traded in London, was quoted at US $ 61.88 (R 257.2, at the exchange) per barrel.

On Monday (18), the dollar hit $ 4,206, the highest nominal price in history, and Brent closed at $ 63.30 ($ 266.2, the current price) per barrel.

According to Abicom (Brazilian Association of Fuel Importers), the international price of gasoline rose by 6% between the most recent adjustment in Brazil and Friday (15).

The unit sees a gap of between 0.09 R and $ 0.19 per liter, depending on the delivery point – the last value refers to the port of Itaqui, Maranhão, one of the main points of import of imported gasoline.

Abicom complains that current prices make imports impossible in all ports. In a report released on Friday, CBIE (Brazilian Infrastructure Center) estimated at R $ 0.10 per liter the average price of gasoline sold by Petrobras relative to the price of the Gulf of Mexico in the United States.

Since 2016, Petrobras' pricing policy has taken into account a concept called import parity, which is the sum of international prices that are converted to real with import costs and profit margins.

During the first months the adjustments were monthly. In July 2017, to defend itself against imports, the company's management authorized the technical area to make daily adjustments.

After the truck strike in May 2018, the company went back and set a maximum of 15 days for adjustments, a policy abolished during the Jair Bolsonaro administration – no longer defined.

The last time the price of gasoline was so long without adjustments was between February and April 2017. In total, it was 55 days. At that time, the liter of the state company was sold for R $ 1.5901, in values ​​corrected by the IPCA.

Currently, the fuel leaves state refineries, averaging $ 1.8054, according to CBIE – Petrobras no longer publishes the average. The price of diesel, which was last adjusted last week (down 3%), is already close to international prices, says the consultant.

In a statement, Petrobras said that international parity policy remains in effect, but that the parity award "is not an absolute value, unique and is perceived in the same way by all agents."

"Actual import values ​​vary from agent to agent depending on characteristics such as trade relations in the international and domestic markets, access to logistics infrastructure and scope of operations," the company says.

The company also states that there were no interruptions in imports from third parties, which "highlights the economic viability of imports of efficient market players".


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Home / brazil / High dollar pressure on gasoline, which has not been adjusted for more than 50 days – 11/18/2019 – Market

High dollar pressure on gasoline, which has not been adjusted for more than 50 days – 11/18/2019 – Market



The rising dollar puts pressure on the gasoline price in the country, which has been adjusted for more than 50 days and, according to experts, the international fuel prices have halted.

The market expects Petrobras to announce an increase in the coming days to cover the gap. Since 2016, the state's price policy has provided monitoring of international prices.

The last adjustment in the price of petrol sold by Petrobras was marketed on September 27, ending this Tuesday (19) 54 days. It is the largest unchanged series since the beginning of 2017.

The increase was 2.5%, reflecting the rise in prices last week when Saudi Arabia's largest refinery was attacked by drones, removing 5% of global production from the market.

On the adjustment day, the dollar closed at $ 4,166 per liter. Brent crude oil, an international reference traded in London, was quoted at US $ 61.88 (R 257.2, at the exchange) per barrel.

On Monday (18), the dollar hit $ 4,206, the highest nominal price in history, and Brent closed at $ 63.30 ($ 266.2, the current price) per barrel.

According to Abicom (Brazilian Association of Fuel Importers), the international price of gasoline rose by 6% between the most recent adjustment in Brazil and Friday (15).

The unit sees a gap of between 0.09 R and $ 0.19 per liter, depending on the delivery point – the last value refers to the port of Itaqui, Maranhão, one of the main points for import of imported gasoline.

Abicom complains that current prices make imports impossible in all ports. In a report released on Friday, CBIE (Brazilian Infrastructure Center) estimated at R $ 0.10 per liter the average price of gasoline sold by Petrobras relative to the price of the Gulf of Mexico in the United States.

Since 2016, Petrobras' pricing policy has taken into account a concept called import parity, which is the sum of international prices that are converted to real with import costs and profit margins.

During the first months the adjustments were monthly. In July 2017, to defend itself against imports, the company's management authorized the technical area to make daily adjustments.

After the truck strike in May 2018, the company went back and set a maximum of 15 days for adjustments, a policy abolished during the Jair Bolsonaro administration – no longer defined.

The last time the price of gasoline was so long without adjustments was between February and April 2017. In total, it was 55 days. At that time, the liter of the state company was sold for R $ 1.5901, in values ​​corrected by the IPCA.

Currently, the fuel leaves state refineries, averaging $ 1.8054, according to CBIE – Petrobras no longer publishes the average. The price of diesel, which was last adjusted last week (down 3%), is already close to international prices, says the consultant.

In a statement, Petrobras said that international parity policy remains in effect, but that the parity award "is not an absolute value, unique and is perceived in the same way by all agents."

"Actual import values ​​vary from agent to agent depending on characteristics such as trade relations in the international and domestic markets, access to logistics infrastructure and scope of operations," the company says.

The company also states that there were no interruptions in imports from third parties, which "highlights the economic viability of imports of efficient market players".


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