A slight decrease in recent days is due to the exhaustion of the upward movement in anhydrous ethanol prices, linked to the low season; product makes up 27% of the gasoline blend
RIO – A Gas has dropped again in price at gas stations across the country after six straight weeks, but remains above R$5 a litre, a weekly survey by National Agency for Petroleum, Natural Gas and Biofuels (ANP)🇧🇷 Between November 20 and 26, the ANP says, the average price of a liter of fuel at pumps fell by 0.2%, to R$5.04, compared to R$5.05 the week immediately previous one.
The final movement in consumer prices approached stability, despite the Petrobras keep the price of fuel frozen for 87 days at its refineries. After efforts by the federal government to contain input prices and curb inflation, petrol prices have increased since October 2, when the liter reached a cycle low, R$4.79. Since then, the product still accumulates a maximum of 5.2% at the pumps.
The slight drop in recent days is due to the exhaustion of the upward movement in anhydrous ethanol prices, linked to the low season. The product makes up 27% of the gasoline blend and has seen a cumulative decline of 3.6% over the past two weeks, according to the Luiz de Queiroz High School of Agriculture from University of Sao Paulo (Esalq/Usp).
In the past eleven weeks, since anhydrous ethanol started to rise, the accumulated maximum of the input is still 10.7%, which still exerts pressure on prices. More intense declines in the price of ethanol may ease gasoline in the near term, say experts consulted by Broadcast.
Another factor that could reinforce the drop in fuel prices is the possible reduction in the price of petrol practiced by Petrobras in its refineries.
For almost three months the company has not changed its prices and, according to Brazilian Association of Fuel Importers (Abicom) and industry consultancies, the gap for the import parity price (PPI) has been narrowed.
Abicom calculates only a 0.1% difference between Petrobras petrol and the PPI at yesterday’s market close, 24. This means that the state-owned company’s prices are only 1% below the international quotation, not requiring immediate hikes . Conversely, this scenario could indicate room for further price reductions, after weeks of possible price damming. At the time Petrobras executives denied the need to raise prices in the refineries, but the specialists reasoned in this direction and the country’s private refineries made adjustments.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
