Brazil diesel imports at risk as global prices surge, widening Petrobras pricing gap

Petroleo Brasileiro SA Petrobras

16/09/2026 18:24

Abicom says Petrobras diesel prices sit 3.89 reais per liter below import parity
About one-quarter of Brazil's diesel consumption depends on imports
ANP says it has not identified risk of supply shortages in Rio Grande do Sul
By Marta Nogueira
RIO DE JANEIRO, Sept 16 (Reuters) - A fresh rally in international diesel prices has widened the gap between international prices and Brazil's state-owned oil company Petrobras PETR3.SA to record levels, prompting independent importers to delay purchases, industry executives told Reuters.
According to the fuel importers' association Abicom, Petrobras' diesel prices on Tuesday were 3.89 reais ($0.79) per liter below import prices, even as local production reached its limit.
"Brazilian refineries will not produce more because they are already operating close to capacity," said Abicom President Sergio Araujo.
Brazil produces most of its own diesel, but relies on imports for about a quarter of its consumption.
Since the start of the U.S.-Israeli conflict with Iran, Petrobras has sought to keep diesel prices low by boosting domestic supply and participating in subsidy programs launched by Brazilian President Luiz Inacio Lula da Silva to curb inflation ahead of October's election, in which he is seeking another term.
When Petrobras imports fuel at higher international prices than it charges domestically, the margin squeeze hurts its profitability and reduces incentives for other importers to bring in diesel.    
International oil prices have surged in recent weeks. Brent crude settled above $108 a barrel on Tuesday, up from around $93 at the start of the month, while U.S. diesel futures reached a record high due to Middle East conflicts and export restrictions from Russia.
     
LOCALIZED DISRUPTION
The diesel rally comes as Rio Grande do Sul's agriculture federation, Farsul, told Brazil's fuels regulator ANP this week that it had received reports of restrictions and delays in diesel deliveries to farmers in the southern state, just as planting of the summer crop begins.
While Rio Grande do Sul is supplied almost entirely by Petrobras' Refap refinery, there have been reports of customers from neighboring states that rely more on imported fuel seeking diesel there, which may be straining local supply, according to one person close to fuel distributors.
ANP said diesel deliveries are proceeding normally and that so far it has not identified a risk of supply shortages in Rio Grande do Sul.
Petrobras said its deliveries are proceeding as planned and all contracted volumes are being supplied.
The situation resembles conditions seen earlier this year, with localized shortages and logistical bottlenecks, but widespread fuel shortages remain unlikely.
"It is a tighter market, but there is no concern about widespread supply disruptions," said Bruno Cordeiro, a market intelligence specialist at StoneX.

 (Reporting by Marta Nogueira, writing by Fabio Teixeira; Editing by Aurora Ellis)
 ((Fabio.Teixeira@thomsonreuters.com; +55 21 99603-4782;))