Competitiveness of biofuels in check with Petrobras’ new commercial strategy

Biofuel producers fear even greater loss of competitiveness with the Petrobras’ new commercial strategy, which abandoned the PPI (import parity price) and will start pricing fuel with an eye on the domestic market.

Biofuels had already been losing ground to petroleum derivatives with measures to try to contain fuel prices since the Jair Bolsonaro (PL) government. The concern now is that the phenomenon is accentuated with gasoline and diesel much cheaper than in the international market.

“It is always a destructive movement for biofuels”, says the president of the Superior Council of Ubrabio (Brazilian Union of Biodiesel and Biokerosene), Juan Diego Ferrés. “Oil is in a position to destroy the birth of any fuel that might replace it.”

When announcing the new commercial policy, Petrobras reduced the prices of gasoline and diesel by R$ 0.40 and R$ 0.44 per liter in its refineries, respectively, increasing the advantage of the two fuels over their renewable competitors, the ethanol and biodiesel.

Even before the cuts in refineries, which began to take effect last Wednesday (17), hydrous ethanol already lost to gasoline in almost all Brazilian states, considering that it has lower performance in engines.

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