The drop in gasoline prices in Brazil and the devaluation of the Brazilian real (BRL) compared to the Paraguayan guarani (PYG) are attracting Paraguayans to shop here.
The PYG is worth much less than the real, but even so, it has become advantageous. R$1 (US$0.19) is quoted at PYG 1,300. There has been an 8.5% devaluation of the real against the guarani in one year.
Paraguayans are crossing the Brazilian border to Foz do Iguaçu (Paraná state) to fill up their cars and go shopping in supermarkets, even with inflation in Brazil.
With the reduction in gasoline prices, the movement of vehicles at the gas stations in Foz do Iguaçu, which is on the border with Ciudad del Este, has increased.
In Foz do Iguaçu, the average price of regular gasoline is R$5.90 and of gasoline with additives R$5.96, according to a survey conducted by the ANP (Brazil’s National Petroleum Agency).
In Paraguay, where there are three types of gasoline, the values vary, but they are all higher. The cheapest fuel costs about R$6.69, and the most expensive, approximately R$7.80.
Marildo Matiello, manager of three gas stations in Foz do Iguaçu, says that Paraguayans represent 50% of the customers in one of the establishments. Sales doubled as of July 20. The gas station extended its opening hours to serve consumers.
Most Paraguayans, says Matiello, look for gasoline with additives. One of the explanations is the type of vehicle. Most of them are large vehicles, such as SUVs, which leads owners to search for better quality gasoline.
Another option sought by Paraguayans is to fill up in Argentina, where fuel is cheaper than in Brazil, ranging from R$3.40 to R$3.70.
BETTER PRICE AND QUALITY
A resident of Ciudad del Este, Irma Dominguez, started to fill up her car every time she came to do some shopping in Foz do Iguaçu. She filled up the 41.5-liter tank of a Suzuki vehicle with R$240.
Like her, most Paraguayans arrive with reals to pay for the fuel, avoiding the exchange rate on the Brazilian side, where it tends to be more expensive.
Lawyers Agustin Britez and Gladys Arévalo also frequent the Brazilian gas stations. Britez says that gasoline in Brazil is of better quality and lower in price.
President-Director of the Business Center Brazil-Paraguay (Braspar), economist Wagner Enis says that the gasoline price in Paraguay is high because the country does not have a refinery and imports the product. No taxes are levied on the product, so it is impossible to reduce the fuel’s value.
Regarding the PYG, Enis says the currency is stable and has not suffered devaluation as it occurs with other Latin American currencies.
MOVEMENT IN SUPERMARKETS
Many Paraguayans who fill up in Foz already have the habit of shopping in the city. The supermarkets located in the region of the Friendship Bridge, a road connecting Foz do Iguaçu to Ciudad del Este, are the ones that receive the most foreign customers.
The list of good price products for Paraguayans in Brazil is long. Fruits, vegetables, coffee, chocolate, and juices, among other items. Paraguayans say that the prices in Foz do Iguaçu are 30% to 40% cheaper.
A Brazilian living in Paraguay for more than ten years, the agronomist Caima França, 42, always goes through the supermarkets in Foz do Iguaçu when he crosses the border.
He says that Brazilian products exported to Paraguay are 10% to 40% more expensive there. What pays to buy in Brazil are chicken, national grape juice, dog food, fruits and vegetables, and cleaning and hygiene articles.
Grape juice, for example, can be purchased in Brazil for R$9 to R$14. In Paraguay, it costs more than R$20. Chicken in Paraguay is 30% more expensive.
Patricia Molinari, 51, says she shops in Foz do Iguaçu every 15 days and, besides the price, the quality also is worth it. Red meat is one of the few products that Paraguayans do not buy in Brazil because the price in the country is still more affordable.
With information from UOL