Business · Energy & Commodities · 2 hrs ago

Opinion urges action on Petrobras’ influence in Brazil’s gas market

Opinion urges action on Petrobras’ influence in Brazil’s gas market

An opinion piece says Petrobras’ influence over Brazil’s gas supply and infrastructure is helping keep costs high.

The company controls 65% of national production and about 90% of processing, according to the piece.

It cites a Ministry of Mines and Energy diagnosis that gas costs rise from US$2.86 per MMBTU at the wellhead to US$12.08 at the pipeline entrance.

The piece says this gap costs the productive sector R$15 billion a year and places pressure on industries that use large amounts of energy.

It argues that limited access to infrastructure and a lack of price transparency weaken competition.

The author calls for Brazil’s competition regulator, Cade, to investigate, and backs government proposals to open the market, including the Gas Release program.

Those measures could increase supply and lower prices, though the piece does not say when they might take effect.

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Opinion article, author not namedopinion writer
We expect the Administrative Council for Economic Defense to investigate the abuse of a dominant position.
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The industry supports it.
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