Petrobras announces that there will be a 39% increase in gas from May

Petrobras announces that there will be a 39% increase in gas from May
Petrobras announces that there will be a 39% increase in gas from May
Photo: Agencia Brasil

The sale price of natural gas to distributors will be 39% more expensive in reais per cubic meters (R $ / m³), ​​compared to the last semester. The increase will start to take effect in May. Measuring in dollars per million BTU, a unit of energy used in the United States and the United Kingdom, (US $ / MMBtu), the adjustment will be 32%.

According to Petrobras’ announcement, the variation is the result of “the application of the formulas of supply contracts, which link the price to the price of oil and the exchange rate”. According to the company, the contract price updates are quarterly and, in relation to the months of May, June and July, the reference adopted is the prices of the months of January, February and March.

“During this period, oil increased by 38%, following the upward trend in global commodities. In addition, domestic commodity prices rose due to the devaluation of the real, ”said Petrobras in a note.

Regis Chinchila, Analyst at Terra Investimentos, reinforces that the readjustments of natural gas are quarterly, that is, the applications / revisions were made taking as reference the prices of the months of January, February and March. “These supply contracts are linked to the price of international oil and the exchange rate. During this period, oil increased by 38%, following the upward trend of global commodities. In addition, domestic commodity prices rose due to the devaluation of the real, ”he explained.

The analyst at Terra Investimentos says that the transfer of costs incurred by the company to transport the product to the point of delivery to the distributors also influences Petrobras’ natural gas prices. “These costs are defined by tariffs regulated by the National Petroleum, Natural Gas and Biofuels Agency (ANP). This portion of the price is updated annually in May by the IGP-M, which, for the measurement period (March 2020 to March 2021), registered an increase of 31% ”, he says.

Due to the effect of the drop in oil prices at the beginning of the year, during 2020, natural gas prices to distributors reached an accumulated reduction of up to 35% in reais and 48% in dollars. Petrobras informed in a note that the final price of natural gas to the consumer is not determined only by the company’s selling price, but also by the margins of the distributors and, in the case of CNG, of the resale stations, and by federal and state taxes. “In addition, the tariff approval process is carried out by the state regulatory agencies, in accordance with specific legislation and regulations. The sales contracts for the distributors are public and are available for consultation on the ANP website ”, concluded the company.

Terra Investimentos made an observation. “Petrobras also informed that the final price of natural gas to the consumer is not only determined by the company’s selling price, but also by the margins of the distributors and, in the case of CNG, of the resale stations, and by federal and state taxes” , he observed.

Impact no bag

Regis comments that this increase in the price of natural gas came despite the scenario of a sharp recession, an increase in unemployment and a reduction in the value of emergency aid. The analyst points out that the inflationary impact is evident again and, now, in this issue of natural gas, with the Brazilian average income falling and relevant challenges in the face of the serious health crisis of Covid-19, the impact on the consumer’s pocket will be important. “The price of international commodities continues to rise with the expectation of recovery in developed economies (impacts of Covid-19), while the scenario of the Brazilian economy has many uncertainties and leaves the dollar valued against the real,” he points out.

For Chinchilla, it is important to highlight that again there will be discussions about the taxes charged to the final consumer, and an in-depth discussion needs to be carried out mainly in the Tax Reform. He notes that the increase does not affect liquefied petroleum gas (LPG), the so-called cooking gas, which rose 5% on Saturday (3), and has already accumulated a 22.7% increase in 2021, but impacts CNG and piped gas reaching homes and industries.

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