Brazilian fuel imports fall back in January

Brazilian net fuel imports fell in January, found the monthly report of the consultancy S&P Global Commodity Insights. The volume of gasoline imported in the month was practically zero, while diesel imports stood at 105,000 barrels per day (barrels/day), on average, the lowest volume since September 2018.

The consultancy’s manager of oil prices and regional analysis, Lenny Rodriguez, says that preliminary data indicate that diesel imports grew slightly in February to 130 thousand barrels/day. According to the consultancy, the percentage of national demand for diesel met by imports has decreased.

In recent months, fuel importers have complained that Petrobras is charging local market prices below international parity, making competition impossible and, as a result, halting import operations.

The state-owned company’s last price adjustment took place on March 11, when the average Petrobras sales price changed to R$3.86 per liter for gasoline and R$4.51 per liter for diesel. The increase came after the rise in international prices with the war in Ukraine.

According to the most recent data from the Brazilian Association of Fuel Importers (Abicom), the rates charged for gasoline had an average disparity of 8% in relation to the international market until the morning of the 28th, indicating the need for a R$ 0.33 per liter rise in fuel. Diesel prices, in turn, were 11% lower than the worldwide benchmark with a R$ 0.58 per liter lag.

S&P Global recalled that, in this context, some companies expressed concern about possible diesel shortages in the country because local refineries cannot meet the entire national demand.

Even so, the consultancy believes that Brazilian refineries will try to maximize diesel production. According to January data, oil processing at national refineries was above average for the month and reached 1.83 million barrels/day, an increase of 110,000 barrels/day compared to January 2021.

According to the firm, the utilization of Petrobras refineries would be approximately 89% in March, representing an increase over the two preceding months.

S&P Global forecasts that processing at Brazilian refineries will reach 1.8 million barrels/day in the second quarter of this year, increasing about 12% year on year.

According to the company, the diesel market in Brazil will be influenced in the short term by the rise in fuel prices, the weakening of the economy, and the increase in inflation. “Government initiatives to lower diesel costs at the pump will maintain consumption in the coming months,” says Rodriguez, “but the economy’s recession may hold back demand.”

According to the consultancy, diesel consumption grew in January, while demand for otto cycle fuels (gasoline and ethanol) dropped to 820,000 barrels per day (barrels/day) in the month, the lowest volume since 2013. However, the drop may have been caused by the increase in covid infections at the beginning of the year in the country, indicated S&P Global.

Source: Valor Econômico

To read the full original article, please go to:

 https://valor.globo.com/brasil/noticia/2022/03/29/importacao-de-combustiveis-pelo-pais-recua-em-janeiro.ghtml

Sharing is caring!