With a barrel of oil surpassing the US$100 mark, Refina Brasil states that it is “very difficult” to hold down the prices of products derived from the commodity and avoid transfers without sacrificing cash. To the CNN Moneythe association that represents private refineries highlighted that 25% to 30% of all oil refined by its members is imported.
The situation for private refineries also aggravates the fact that the largest portion of imported oil comes from the United States and Saudi Arabia, which are at the epicenter of the conflict. According to Refina Brasil, private refineries represent 20% of the national refining supply.
“If I am exposed to a dollarized cost, it is very difficult to maintain the price adjustment that the international market imposes on me. The consequence in the end ends up being an increase in the price of fuel”, Matheus said to CNN Money.
The Middle Eastern country began redirecting crude oil shipments from eastern ports to Yanbu on the Red Sea after the site came under attack.
“Although the USA is a relevant exporter, in a scenario in which they are immersed in an internationally militarized conflict, evidently the preference for those products is no longer the Brazilian market”, said the director of New Business at Refina Brasil, Matheus Soares, to CNN Money.
The Refina Brasil executive states that the price of oil represents around 80% of the final cost of derivatives produced by private refineries. For this reason, Matheus Soares says that any fluctuation in this cost element, .
In addition to the drop in production in the Middle East and the closure of the Strait of Hormuz, the cost of freight and ship insurance also weighs on price volatility.
“In the refining link, we are already starting to have an impact on prices because the quotes I am receiving for the acquisition of imported oil already have the element of war priced in,” he said.
Gas stations
Petrobras signaled that it will avoid passing on price volatility in the international market to the Brazilian consumer. The state-owned company reported that there is currently no risk of interruption in oil imports or exports.
By holding down prices, the internal gap in diesel and gasoline prices increases. Calculations released by Abicom (Brazilian Association of Fuel Importers) this Monday (9) indicate an average difference of R$ 2.74 per liter of diesel oil and R$ 1.22 per liter of gasoline in the main Petrobras hubs in relation to international prices.
Ipiranga stated that it continuously monitors market conditions and can make commercial adjustments. In a note, the company highlighted that the final price at gas stations is defined by resellers.
“The cost of the fuel sector is influenced by several factors. In the case of diesel, for example, one of these influences is that around 30% of the volume consumed in the country is imported”, says Ipiranga.
