With prices lower than in Paraguay, Brazilian border gas stations run out of fuel

RIO DE JANEIRO, BRAZIL – Paraguayan residents have been filling up at gas stations in Ponta Porã, which ran out of gas for several hours; a liter of gasoline is R$0.60 (11 cents) per liter cheaper in Brazil than in Paraguay.

After residents of Pedro Juan Caballero (PY) crossed the border to fill up with gasoline on the Brazilian side, in Ponta Porã (MS), gas stations ran out of fuel for several hours on Tuesday (12). The images show kilometer-long lines of cars in search of cheaper fuel in Brazil.

s unusual because previously, residents of the borderline between Brazil and Paraguay would look for Paraguayan gas stations to fill up their vehicles. However, with the reduction of the state-level VAT in Brazil last week, fuel in Mato Grosso do Sul is cheaper than at Paraguayan gas stations, increasing demand.

As it turned out, gas stations in Ponta Porã had a 50% increase in traffic in recent weeks, and on Tuesday afternoon (12) gas stations in the central area ran out of gasoline because demand was much higher than average. In some of them, the stock was regulated hours later with gasoline from another branch.

Border dealers reported that they had never experienced such a situation. On average, gas stations in Ponta Porã are R$0.60 cheaper than gas stations in Pedro Juan Caballero.

To g1, economist Michel Constantino explained that Brazilian gas stations are already feeling the effects of the tax cut, while in Paraguay the high dollar and the lack of discounts affect the high price.

“The dollar is also taken into account when calculating fuels internationally, especially in Paraguay. Since the country has not reduced taxes, prices in the neighboring country remain high. With the greater incentive in Brazil, cars seek the country to fill up for the lower prices,” explains the economist.