Fuel Price Cuts Announced by Petrobras (PETR3; PETR4) Fail to Reach Consumers as Distributors Control Price Pass-Through

The Bolsonaro government sold BR Distribuidora in 2019, which ended Petrobras’ direct access to the end consumer, that is, its ability to sell gasoline, diesel, and ethanol directly to Brazilian consumers. Since then, Petrobras has reduced refinery oil prices by 16% between January 2023 and January 2026; however, fuel prices at the pump have risen 37% over the same period. Petrobras CEO Magda Chambriard has noted that pricing flexibility declined after the privatization of the company’s fuel distribution network.

Now, despite Petrobras’ recent 5.2% gasoline price cut for distributors, equivalent to a 14-cent-per-liter reduction, most consumers across Pernambuco and others Brazilians states report little to no relief at the pumps. 

Industry insiders explain that distributors, who negotiate directly with Petrobras, are largely responsible for deciding when and how much of the discount is passed on to retail gas stations. According to the Pernambuco Fuel Union, distributors have passed on only a fraction of the reduction, lowering station costs by just 1 to 4 cents per liter.

In Olinda’s Bultrins neighborhood, one gas station defied the trend with an independent 10-cent price cut, but this remains an exception. Consumers express frustration and confusion, largely unaware that distributors control pricing dynamics, often directing criticism unfairly at gas stations.

“The final price of gasoline is influenced by multiple factors, including distributor margins, ethanol prices, and taxes,” the union said. “The lack of transparency regarding the distributors’ role leaves gas stations unjustly exposed to consumer backlash.”

As drivers continue to face rising costs amid minimal price reductions, calls are growing for clearer communication and greater accountability within Brazil’s complex fuel supply chain.