Petrobras announced it would refund the difference between auction prices and import parity pricing (PPI) published by the National Petroleum Agency for March 23-27, calculated at R$50.67 per cylinder for Suape and R$51.40 for Santos. Industry sources indicate this reimbursement represents roughly 35% of total premiums paid, equivalent to approximately R$700 per tonne. The Brazilian LPG Retailers Association (Abragás) reported distributors initially passed through R$7 per cylinder increases to resellers, but subsequent reductions amounted to only R$1.35-R$1.47, representing less than 20% of the auction-driven cost increase.
Presidential Decree 12.930/2026, published April 15, established R$850 per tonne import subsidies with a R$330 million program cap, but limited eligibility to deliveries between April 7 and May 31. This timeframe excludes the March 31 auction volumes entirely. Petrobras stated it is evaluating adhesion to the subsidy program under Provisional Measure 1.349, which would provide R$11.05 per 13-kilogram cylinder in additional relief if approved and applied. The company has begun crediting PPI-based refunds against distributor invoices since April 13, though it maintains existing auction methodologies will continue unchanged as the measure addresses emergency conditions.
The National LPG Distributors Union (Sindigás) emphasized the refund does not constitute auction cancellation or full price normalization, but rather partial adjustment. Distributors participating in the auction face losing approximately R$16 per cylinder in unreimbursed premiums beyond PPI levels, as the subsidy program timing excludes their elevated procurement costs. Separately, the Mataripe refinery in Bahia implemented a 15.3% LPG price increase effective April 1, coinciding with the auction controversy.
This article was curated and published as part of our South American energy market coverage.
