Petrobras announced an auction of 20 million liters of diesel in the southern state of Rio Grande do Sul, scheduled for March 11, to address reported fuel shortages in the region.
The auction follows reports that Petrobras has been refusing extra diesel orders because domestic prices are significantly lower than international benchmarks—a gap widened by the U.S.–Iran conflict and the company’s policy of shielding consumers from short‑term volatility.
CEO Magda Chambriard said the company "does not pass short‑term global volatility through to consumers and is still assessing the new oil price level before considering adjustments," underscoring the pricing strategy that has created the supply imbalance.
A company source added, "We cannot hand out additional diesel now so distributors can stock up cheaply and then profit later," explaining why Petrobras opted for an auction to sell at higher or different price levels and partially cover the gap with international markets.
The auction is expected to relieve pressure on the agricultural sector in Rio Grande do Sul, a key soybean and corn producer, but it also highlights a headwind for Petrobras: the persistent price gap that could compress margins if the company continues to sell at discounted domestic rates.
Analysts view the move as a tactical response rather than a sign of systemic supply failure; however, the auction signals that Petrobras may need to adjust its pricing policy or increase inventory to avoid future shortages and protect margins.
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