The regulatory agency presented data during a public meeting showing Petrobras purchases gas at the wellhead for $3.80 per million BTU and resells it to distributors and free consumers at $12.40 per million BTU. ANP technical staff concluded that “Petrobras remains dominant in the non-thermoelectric market of the integrated grid” and that “concentration levels remain high” in the sector. The agency’s analysis found “elevated dominance of the incumbent agent in gas supply and commercialization” with current regulation “insufficient to generate effective competition” and lacking “efficient mechanisms for supply deconcentration.”
The ANP’s proposed agenda includes broader access to pipelines and gas processing units, a tariff review for transport infrastructure delayed for years, and gas release programs requiring compulsory auctions of volumes controlled by dominant agents, primarily Petrobras. A study by Dieese economist Cloviomar Cararine showed Petrobras achieved a profit margin of 29.15 percent in the first half of the year, surpassing Saudi Aramco’s 25.48 percent for the first time.
While the government has not officially contacted ANP about Petrobras’s positions, the agency maintains it can proceed even if the government requests a halt, though sources acknowledge the executive branch has instruments including National Energy Policy Council resolutions, decrees, or provisional measures that could block the regulatory measures. The deconcentration measures would generate economic losses for the state company, but ANP evaluates it is incorrect to maintain the gas sector in a situation practically of “monopoly without regulation.” Sources indicate the excessive margins are ultimately paid by consumers, while the agency proceeds with its scheduled regulatory agenda unless formal government intervention materializes.
This article was curated and published as part of our South American energy market coverage.
