Petrobras announces reduction in the price of natural gas for distributors | Cars

Petrobras states that the average price of the molecule sold to distributors accumulates a reduction of around 25%. According to the company, the reduction reflects the updates provided for in the contract, and the effect of new products and natural gas sales contracts that began in January 2024.

Contracts with distributors provide for quarterly updates of the portion of the price related to the gas molecule and link this variation, up or down, to fluctuations in Brent oil and the R$/US$ exchange rate. According to the company, natural gas prices had already been adjusted on May 1st.

This Friday, Petrobras also announced that it approved new commercial modalities for natural gas sales to state distributors and free consumers. The price reduction mechanism in natural gas sales contracts will be modulated according to performance.

“With this new mechanism, depending on the contracts and volumes handled, distributors will have an additional reduction of up to 10% in the prices of the gas molecule, increasing the already accumulated drop of around 25% in the average price of the molecule since the beginning of 2023 , with the potential to achieve a reduction of up to 35%”, says the company.

“For free consumers, Petrobras will offer a new portfolio of sales products under more customized and competitive conditions. In this way, Petrobras intensifies its role in the market opening process, contributing to the expansion and strengthening of a more liquid free market , competitive and diverse.”

Understand Petrobras’ new pricing policy

Petrobras approved this Friday, 10/05, new commercial modalities for natural gas sales to state distributors and free consumers. For distributors, Petrobras will offer a price reduction mechanism in natural gas sales contracts currently in force, according to their performance. With this new mechanism, depending on the contracts and volumes handled, distributors will have an additional reduction of up to 10% in the prices of the gas molecule, increasing the already accumulated drop of around 25% in the average price of the molecule since the beginning of 2023, with the potential to achieve a reduction of up to 35%.

For free consumers, Petrobras will offer a new portfolio of sales products under more customized and competitive conditions. In this way, Petrobras intensifies its role in the market opening process, contributing to the expansion and strengthening of a more liquid, competitive and diversified free market.

On 05/01/24, natural gas prices had already been adjusted, with a reduction of, on average, 1.5% in reais per cubic meter (R$/m³) of the molecule sold to distributors, in relation to the beginning of the quarter February-March-April 2024. The price drop also reflected the reduction in the price of Brent oil and the appreciation of the dollar, according to reference indicators provided for in the contracts.

Thus, since the beginning of 2023, the average price of the molecule sold to distributors has accumulated a reduction of around 25%, reflecting not only the updates provided for in the contract, but also the effect of new, more competitive natural gas sales products/contracts. which began in January 2024.

Composition of the price of natural gas

The final price of natural gas to the consumer is not only determined by the selling price of the molecule by Petrobras, but also by the cost of transportation to the distributor, the supply portfolio of each distributor, as well as their margins and federal and state taxes. . In the case of CNG (vehicle natural gas), the margin from resale stations also makes up the final price. Furthermore, consumer tariffs are approved by state regulatory agencies, in accordance with specific legislation and regulations.

Petrobras emphasizes that this price update does not refer to the price of LPG (cooking gas), packaged in cylinders or sold in bulk.