World scenario, privatizations and imports: presidential errors on the rise in fuel prices

Last week, Petrobras announced a 16% to 25% readjustment in fuel prices, after the soaring price of oil on the international market.

Some of the presidential candidates took to social media to comment on the increase, including President Jair Bolsonaro (PL) and former President Luiz Inácio Lula da Silva (PT), who lead polls. THE Magnifying glass checked some of these statements, check it out:

​FALSE

According to March 14 data from Global Petrol Prices, which compiles international data on the value of oil and oil products, the cost of gasoline in Brazil is close to the world average. The average price of a liter of fuel in the world is US$ 1.32 (approximately R$ 6.77 at the price of March 15th), while in Brazil the price is US$ 1.305 (R$ 6.67). The National Petroleum Agency shows a similar price for fuel in Brazil, in the week of March 6 to 12: R$ 6,683.

In 88 of the 170 countries listed, gasoline is cheaper. Venezuela (US$0.025), Libya (US$0.032) and Iran (US$0.051) are the countries where fuel is cheaper. Hong Kong (US$ 2,879), Monaco (US$ 2,477) and the Netherlands (US$ 2,432) are the places where filling up the car is more expensive.

THE Magnifying glass contacted the Presidency’s Communications Secretariat, but received no response.

REAL

BR Distribuidora started to have more private capital than state capital in July 2019, when it sold 30% of its shares for R$8.6 billion and became a minority shareholder in the company. Until then, Petrobras held 71.25% of the shares. Two years later, in 2021, the state-owned company sold all its remaining shares for R$11.4 billion.

​FALSE

Brazil did not start importing, in dollars, fuel from the United States and other countries only after the sale of BR Distribuidora. According to data from the Comex Stat, the federal government’s official foreign trade statistics portal, the country imported between 14.1 million tons and 19.8 million tons annually from 2010 to 2021.

Since 2016, more than half of fuel has been imported from the United States — the US share of imports reached 74% in 2020, but dropped to 53% last year. This trend, however, began during the Lula government. In 2002, only 1% of imported fuel came from there, against 28% in 2010.

THE Magnifying glass contacted the Lula Institute’s press office, but received no response.

TRUE BUT

In fact, Brazil extracts enough oil to meet national demand. According to data from the 2021 Statistical Yearbook of Petroleum, Natural Gas and Biofuels, Brazil consumes the equivalent of 2.3 million barrels of oil per day and produces 3 million. This does not mean, however, that the country is self-sufficient in fuels, since oil needs to be refined, that is, transformed into other products, before being consumed.

Most refineries in Brazil, built before the discovery of reserves in the pre-salt layer, do not have the capacity to treat the type of oil that is extracted from these fields. They were designed to process heavy type oil, which Brazil used to import, and not the light type. Because of this, Brazil ends up exporting and importing crude oil, as well as fuel.

REAL

Petrobras announced, on February 23, 2022, net income of R$106.7 billion in 2021. The information is contained in the company’s Financial Performance Report for the fourth quarter of the year. The document also informs that the company paid R$ 37.3 billion to shareholders in that quarter. This money is added to the payment of another R$ 63.4 billion in the rest of the year, totaling R$ 100.7 billion.

EXAGGERATED

In 2021, Brazil produced 461,000 cubic meters of oil per day, which is equivalent to 168.5 million cubic meters of oil per year, and sold 139.5 million cubic meters of oil-derived fuels and biofuels on the domestic market. according to the ANP (National Association of Petroleum, Natural Gas and Biofuels). However, of the amount traded, 22.3 million cubic meters were imported – that is: 16%, almost half of the 30% mentioned.

Of the main fuels in the national market, only LPG (Liquefied Petroleum Gas), used in gas cylinders, is close to the number stated by the pre-candidate, with 29.5% of the volume sold in 2021 having been imported – the percentages for gasoline, ethanol and diesel were, respectively, 6.1%, 1.6%, 23.2%.

By WhatsApp, the candidate’s adviser said that he was referring to the import of petroleum products in general, and not, specifically, of fuels. A survey by the Single Federation of Oil Workers, in January this year, showed that 28% of the oil products consumed in Brazil are imported — a number close to the one cited by the candidate.

REAL

In 2021, 79% of the amount of oil-derived fuel sold in Brazil, regardless of whether it was imported or not, was refined on national soil, according to the ANP (National Association of Petroleum, Natural Gas and Biofuels) in a note sent by email to Lupa. In total, last year, Brazil refined 105.5 million cubic meters of oil.