The Brazilian Association of Fuel Distributors Sindicom has contacted the ANP regulator and a number of agencies with a warning about the risks to the national fuel supply. According to Reuters, the reason was the cancellation of expected fuel auctions by Petrobras, as well as an increase in demand, which is especially noticeable for diesel.
Reuters clarifies that Petrobras produces most of its diesel domestically, with about 25% coming from imports. When imports grow or become the only source of peak coverage, the logistical burden shifts to the port infrastructure: unloading, storage, internal transportation, and distribution by region. In this configuration, any management decision on procurement and auctions quickly affects the stability of the chain.
In the letter, which Reuters writes about, there is a request to resume auctions in order to relieve tension and maintain continuity of supply. For the transportation market, this means the risk of a spike in freight prices and increased operating costs. For industry and trade, this means an increase in production costs and the need to adjust budgets for logistics and inventory.
The news is important for Brazil's foreign economic activity circuits because fuel forms the cost of almost any domestic delivery to and from ports. With an increase in logistics costs, the competitiveness of export shipments decreases, and imported goods receive an additional price layer already on the domestic shoulder.
