Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP), the sector's regulatory body, has extended for two months, until June 30, the easing of the obligation for producers and distributors to maintain minimum stocks of gasoline and diesel, according to a note from "Agência Brasil". The measure was initially taken on March 19, valid until April 30, as a way to guarantee supply in the country and contain the escalation of petroleum derivative prices triggered by the war in Iran. Without the obligation to maintain minimum stocks of diesel and gasoline, producers and distributors can offer more fuel to the consumer market, reducing demand pressure on petroleum derivatives and, consequently, less impetus for price increases. "The easing aims to bring stocks closer to the point of consumption and increase the fluidity of supply to the market," says the ANP, an agency linked to the Ministry of Mines and Energy. According to Resolution 949/2023 of the agency, producers and distributors need to maintain weekly stocks of gasoline A and diesel A (S10 and S500). Classification A refers to the fuel that comes out of the refineries, that is, before being mixed with ethanol (in the case of gasoline) and biodiesel (in the case of oil). Despite having announced to the press the extension of the flexibility this Wednesday (6), ANP clarified that producers and distributors were notified by means of an official letter on the 17th.
Price shock
This exceptional measure is part of a package of actions by the ANP (National Agency of Petroleum, Natural Gas and Biofuels) and the federal government to curb the increase in prices of petroleum products in Brazil. The escalation began with the attack by the United States and Israel on Iran on February 28th. Because of the conflict, oil transport suffered interruptions in the Strait of Hormuz, a maritime passage in southern Iran that connects the Persian Gulf and the Gulf of Oman. Before the war, about 20% of the world's oil production passed through there. The blockade of Hormuz has been one of the retaliations carried out by Iran. With less oil circulating through the logistics chain, the price of a barrel of crude oil and petroleum products has experienced an upward trajectory in the last two months. During this period, the price of Brent crude (the international benchmark) jumped from approximately US$70 to around US$120. This Wednesday afternoon, it is nearing US$100. Since oil is a commodity – a product traded at international prices – scarcity leads to price increases even in producing countries, such as Brazil. Furthermore, Brazil imports about 30% of its domestic diesel consumption. Among other measures adopted by the Brazilian government are tax exemptions and subsidies for producers and importers.
This text was translated by machine from Brazilian Portuguese.