LPG for industrial use price adjustments

LPG for industrial use price adjustments

   

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Our price policy for LPG for industrial and commercial use sold to distributors at our refineries is based on the import parity price, formed by these products' international prices plus the costs that importers would have, such as transportation and port fees, for example. Parity is necessary because the Brazilian fuel market is open to free competition, and distributors may choose to import the products. In addition, the average price includes a margin that covers risks (such as exchange rate and price volatility).

Residential gas is less expensive than LPG for industrial and commercial use because of a National Energy Policy Council resolution, which recognizes lower prices for residential LPG trade as being of interest to the national energy policy.