Prices for liquefied petroleum gas (LPG) sold to distributors are based on the import parity price, formed by the international prices of these products plus the costs that importers would have, such as transportation and port taxes, for example. Parity is necessary because the Brazilian fuel market is open to free competition, thus distributors may opt to import products. In addition, pricing takes into account a margin that covers risks (such as exchange and price volatility).
The P-13 LPG (cooking gas) price is lower than the price for LPG for industrial and commercial use, pursuant to a resolution of the National Council for Energy Policy, which acknowledges that lower prices for trading LPG for residential use are of interest to the national energy policy.
The selling price to distributors is not the sole determinant of the final price for the consumer. Since the Brazilian law guarantees price freedom on the fuels and byproduct market, Petrobras’ revisions may or not be reflected in the final price, which includes taxes and transfers from other trade agents, such as distributors and resellers.