Fuel drop at gas stations loses strength, says ANP

After 14 consecutive weeks of sharp decline, fuel prices are beginning to stabilize at Brazilian gas stations, according to a price survey by the ANP (National Agency for Petroleum, Gas and Biofuels) released this Friday (7th).

The slowdown in the rate of decline reflects the lack of price cuts at refineries in a scenario of more expensive oil. The transfers of tax cuts approved at the end of June have also reached establishments in full.

Generating good news for the campaign for the reelection of President Jair Bolsonaro (PL), Petrobras is now being pressured not to pass on to consumers the rise in international oil prices.

At the opening of the market this Friday, according to Abicom (Brazilian Association of Fuel Importers), the average price of gasoline in Brazilian refineries was R$ 0.32 per liter below import parity – a kind of benchmark for international quotations.

According to the agency, gasoline was sold, on average, at R$ 4.79 per liter, a decline of only 0.4% compared to the R$ 4.81 recorded in the previous week. Since the beginning of September, Petrobras has not made any cuts in the sale price for its refineries.

This week, the ANP found the cheapest gasoline in the country in São Paulo, at R$ 4.15 per liter. The most expensive was also found in the capital of São Paulo, at R$ 6.99 per litre.

The price of diesel fell a little more, with the transfer of the cut in refineries in mid-August, and closed the week at R$ 6.52 per liter, a value 0.6% lower than last week. It is the lowest price since the second week of March, in inflation-adjusted values.

The price of ethanol rose 0.9% to R$3.40 per liter. The successive drops in the pump price of fuel increased its competitiveness in relation to gasoline to six states and the Federal District, according to data from the ANP last week.

The cheapest ethanol in Brazil was found by the ANP in São Paulo, at R$ 2.79 per liter.

The price of bottled gas also continued to fall, as a result of two cuts in refineries during the month of August. According to the ANP, the 13-kilogram cylinder was sold, on average, at R$110.62, down 1.3% from the previous week.

The drop in fuel prices has been used by the government and supporters as an argument in favor of Bolsonaro’s re-election. The external scenario, however, is more adverse in this second round, after a production cut by OPEC (Organization of Petroleum Exporting Countries).

In one week, the price of Brent, an international benchmark traded in London, rose 9%, closing this Friday at US$ 95.89 per barrel. Analysts believe the market will remain tight and project trades above $100 a barrel in the coming quarters.