MercoPress. South Atlantic News Agency
Petrobras increases LPG price 11% for commercial and industrial clients
Brazil is an important oil producer but its refineries cannot produce enough LPG for domestic needs, forcing the country to import a quarter of LPG needs. Petrobras announced that the price of liquefied petroleum gas (LPG) for commercial and industrial clients has risen 11%, effective midnight Friday. The company said the increase does not affect the price of LPG sold in smaller containers for residential uses such as household cooking, which rose 15% on September first.
The increase in LPG for residential use was the first in Brazil in 12 years. Petrobras has repeatedly complained about the mismatch losses of having to pay in dollars for imported LPG and receive local Reais. The Rousseff and previously Lula da Silva administrations have implemented a policy of keeping fuel and power prices frozen, even if these meant huge losses for companies involved.
The increase comes as Brazil's Real has plunged against the U.S. dollar, forcing up the price of imports. While Brazil has become an important oil producer in recent years, its refineries cannot produce enough LPG for domestic needs, forcing the country to import about a quarter of LPG needs.
A weaker Real forces up the price of LPG imports in local currency terms.
The price hike for the final consumer will be around 5%, said Petrobras. About 25% of the 7.4 million tons of LPG that Brazil uses every year is imported.
Top Comments
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Read all commentsI see the Petrobras “management” (I can hardly bring myself to use that word) got their processing plans screwed as well as the PT and The Chief Crook, Lula, screwed them all.
Sep 27th, 2015 - 11:56 am 0Is there anybody even half competent to run a piss up in a brewery in Brazil?
It seems not.
@1
Sep 27th, 2015 - 04:19 pm 0Maybe the brasshole ? sober or drunk, it would make no difference in his case.
@ 1 ChrisR
Sep 28th, 2015 - 02:48 am 0”I see the Petrobras “management” (I can hardly bring myself to use that word) ”
arf! arf!
(holding sides!)
“management”
(weeping)
“processing plans”
(let out a bit of wee, sorry!)
“half competent ... in Brazil”
(lost the plot, on floor.... crying!)
'Petrobras' (and) 'management' ??? In the same sentence??
:0)
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