Petrobras increased the price of natural gas by 19%. The updated prices will go into effect this Sunday, May 1st
Last Friday, the 29th, the Petrobras announced that natural gas sales prices for distributors would increase by 19% as of this Sunday, May 1st. According to the state-owned company, the increase is due to contracts that provide for readjustment every three months according to fluctuations in the Petroleum Brent type and exchange rates in the same period.
THE company He also highlighted that the price of natural gas for consumers is also influenced by the profit margins of distributors, in addition to federal and state taxes. "On average, for residential customers, the Petrobras share in the consumer price corresponds to around 28% of the final tariff, according to information from the Monthly Bulletin for Monitoring the Gas Industry, published by the MME,'' highlights note from Petrobras.
Petrobras highlights that the new natural gas prices charged to distributors will remain the same until 31/7/2022. The action of updating the price only every three months is an attempt to mitigate the impact of occasional fluctuations in Brent oil. In this way, consumers are guaranteed predictability and transparency in relation to values.
Gas prices in Brazil are applied in accordance with the Import Parity Price Policy (PPI), which is a way of applying international market prices to the domestic market. The price of a barrel of oil is taken into account. Brent. In recent months, the price charged for Brent barrels has risen sharply, mainly due to the war in Ukraine. The barrel jumped from U$ 82 in early January to U$ 130 in March. The value stabilized, being quoted at U$ 105.
Who are those impacted by the rise in natural gas?
It is worth noting that price changes will not affect liquefied petroleum gas (LPG) customers. The state-owned company's measure should have a strong impact on piped natural gas users and customers who use Vehicular Natural Gas (CNG). Some sectors of the industry will also suffer from the impact of the adjustment, such as chemical, metallurgical, pharmaceutical and textile production.
The impact of the adjustment for the final consumer is uncertain. As Petrobras said, the final price still depends on the distributors' profit margin and federal and state taxes.
"The update of Petrobras' natural gas prices followed the adjustment parameters used by other companies operating in this segment, with a profile similar to Petrobras, which ranged from 18% to 28% in contracts linked to Brent oil,” highlights Petrobras.