RIO DE JANEIRO, BRAZIL – The average price of gasoline in Brazil reached a record last week: R$7.27 per liter. S10 diesel was the second highest on record: R$6.73. The data comes from the ANP (National Agency for Petroleum, Natural Gas and Biofuels).
Let´s put that into perspective: Gasoline price reached a record high in the country at R$7.27 (US$1.45) per liter, or US$5.50 per gallon. GDP per capita in Brazil is about nine times lower than in the U.S. and the Purchasing Power Index is about one-third that of the U.S. Simply put, the cost of fuel is actually hurting Brazilians as much as if Americans had to pay a price of at least $16.50 per gallon. Think about that for a moment.
Add to this the massive price increases in basic goods, and it is no wonder that over 50% of households are now considered poor. Often they are working poor. They maybe have a house, a car, furniture – all on credit – but they can no longer drive around and eat only the cheapest food, if at all regularly.
Uber, food delivery and the like are also outside the budget of many Brazilians, because gasoline prices have made trips massively more expensive.
The values take into account the entire historical range of the two fuel products, since 2004 for regular gasoline and since 2012 for S10 diesel, when its marketing became mandatory.
S500 diesel, which was widely used in the country until then, is now used only on a smaller scale in trucks manufactured before 2012.
Here are the numbers:
The previous record for gasoline was set between March 13 and 19, when Petrobras adjusted fuel at refineries by nearly 19%.
Diesel, on the other hand, remains at record levels this week after Petrobras adjusted it by almost 25%.
The highest price per liter recorded by ANP at gas stations – not the average price – was R$8.60 per liter.
It was the third highest since 2004, the previous records of R$8.95 and R$8.77 having been set in March in the weeks following and preceding adjustments at refineries, respectively.
The increase in fuel prices is likely to continue, as there are no signs that Petrobras will lower refinery prices.
On Monday (27), the company’s president, José Mauro Coelho, shared a video on a social network in which Petrobras reiterated its commitment to aligning prices with international market prices.