Brazil’s Mining and Energy Minister Alexandre Silveira said he was “100% certain” that Latin America’s largest economy was not facing any fuel shortages, despite several fuel station organizations reporting supply delays.
“Petrobras had complete control over fuel pricing. The state-owned oil corporation approved a program to cut diesel and gasoline prices in May, abandoning a more market-based policy in favor of greater flexibility to smooth out unpredictable foreign pricing,” Silveira said.
According to market representatives, such a step discourages third-party imports.
StoneX, a consultant, issued a statement blaming Petrobras’ pricing for deterring imports while adding that domestic refining is insufficient to meet local demand.
Separately, the fuel station trade association Fecombustive stated that distributors are facing product constraints, but no shortages have emerged.
Fuel Distributors Federation Brasilcom also stated in a statement that there were only “occasional and isolated shortages.”
Petrobras is upholding its responsibilities to distributors by providing all committed quantities, the company said in a statement on Friday, adding that numerous fuel suppliers serve the local market best.
