Petrobras Changed the LPG Supply Contracts

Source: www.gulfoilandgas.com 11/1/2016, Location: South America

Petrobras has not made any change in LPG costs table, which still has the same charging. However, Petrobras changes the LPG supply contracts with distributors to better reflect logistics costs that typically should be covered by them, but they were supported by the company. It is a movement similar to the one held two years ago to contracts for the supply of diesel and gasoline.

Petrobras estimates that the impact on prices cylinder of 13 kg, which is the benchmark for residential use, is R $ 0.20 per unit, the average of the country. This represents 0.36% of the price of a cylinder that costs R $ 55.00, for example. According to internal calculations, maximum impact, disregarding the national average, shall not exceed R $ 0.70 per cylinder at any point of the country.

This movement is important to avoid distortions and to stimulate investment in the logistics chain. An example is the storage: deliveries made by cabotage often LPG is stored in our tanks. The price charged to those who use the company's infrastructure was the same applied to customers who do not use. From now it is differentiated, and less for those who have their own infrastructure or carries direct LPG ship cabotage, encouraging distributors to invest in storage. There are similar examples in the use of our products and LPG loading stations.

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