Page 12 - LatAmOil Week 27 2021

LatAmOil BRAZIL LatAmOil

Petrobras hikes gasoline and diesel

prices, to the dismay of truckers

BRAZIL’S national oil company (NOC) Petro- policy and truckers’ concerns about the rising
bras raised the price of gasoline and diesel ear- cost of diesel. In a statement issued after the
lier this week, in a move that has drawn sharp meeting, the NOC said that the CEO had “lis-
criticism from the country’s politically powerful tened to the concerns of the CNTRC represent-
trucking industry. atives and stated that he [would] evaluate the
Petrobras announced the rate hike on July 5. sector’s suggestions.”
It explained that refinery-gate prices for gasoline The company agreed earlier this year to
were going up to BRL2.69 ($0.51) per litre, a rise exempt diesel prices from federal taxes for a
of BRL0.16 ($0.03) or 6.3%, while refinery prices period of two months. It did so in response to
for diesel were climbing to BRL2.89 ($0.55) per protests and road blockages staged by truckers
litre, an increase of BRL0.10 ($0.019), or 3.7%. who were concerned that rising fuel costs were
This move marked the first price increase undermining their earnings. That exemption
since the replacement of Petrobras’ former CEO expired in June, causing diesel prices to rise once
Roberto Castello Branco with Joaquim Luna e again. ™
Silva, a former general and ally of Brazilian Pres-
ident Jair Bolsonaro with no experience in the
oil and gas sector. It makes sense in light of the
fact that world crude oil prices have been mostly
bullish lately, but it has not been well received by
truckers, who have also been some of the presi-
dent’s biggest supporters.
The National Council for Road Cargo Trans-
port (CNTRC), an industry group, made this
point of view clear in a statement that expressed
“surprise and displeasure” with the rate hikes.
It also urged Petrobras to suspend the
new pricing schedule, saying that the delay
would allow the NOC to review the council’s
recommendations.
Petrobras announced the price increase
several days after Luna met with members of
CNTRC’s board of directors to discuss pricing Diesel fuel is no longer exempt from federal taxes in Brazil (File Photo)

ARGENTINA
Vista and Trafigura team up for joint

development of Bajada del Palo Oeste

VISTA Oil & Gas, a Latin America-focused One of the documents is a crude oil market-
company with headquarters in Mexico City, has ing agreement, it said, while another is an invest-
teamed up with Trafigura, a Swiss commodities ment accord that provides for joint development
trading firm, in a bid to accelerate development of the Bajada del Palo Oeste concession. A third
at a licence area in the Vaca Muerta shale forma- agreement serves to establish an unincorporated
tion in Argentina. joint venture for the project, it noted.
In a statement dated June 28, Vista said it had The second and third agreements lay the
signed several agreements on the project with groundwork for the partners to work together
Trafigura. to establish five drilling pads at the concession.

P12 www. NEWSBASE .com Week 27 08•July•2021