The delays complicate the Lula administration’s objective of conducting a structural federal gas auction targeting industrial consumers, a centerpiece policy initiative. The Energy Ministry previously attempted to regulate transport system and processing facility tariffs through provisional measure MP 1304/2025, which failed, prompting the current regulatory approach through ANP. Silveira stated during discussions with Abiquim President André Passos that he has worked throughout his three-year tenure to prevent Petrobras lobbying from blocking reductions in gas prices for industry, particularly for federal gas reserves controlled by PPSA.
The controversy extends to recent Petrobras LPG auctions. President Lula announced plans to annul a March 31, 2026 liquefied petroleum gas auction that resulted in premiums reaching 100 percent above Petrobras reference prices, adding up to R$39.40 per 13-kilogram cylinder depending on region. Lula stated the auction proceeded against Petrobras management’s wishes and contradicted government guidance. The company subsequently suspended April LPG auctions entirely while maintaining a 30 percent discount against international pricing benchmarks, according to industry sources. Petrobras supplies approximately 75 percent of domestic LPG consumption, with the remaining 25 percent imported primarily by the state company. The government announced an R$850 per ton subsidy for imported LPG totaling R$330 million over two months, extendable for an additional two months, though ANP has not yet published implementing regulations defining importer eligibility criteria for subsidy reimbursement.
This article was curated and published as part of our South American energy market coverage.
