Brazil's ANP released on Thursday (2) a list of five companies that joined the first phase of the diesel subsidy program, excluding major distributors Vibra, Ipiranga, and Raízen. President Luiz Inácio Lula da Silva's government is discussing technical adjustments to attract them, as they handle half of private imports. The program aims to cushion the war in Iran's effects on fuel prices.
Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) confirmed on Thursday (2) that only five companies joined the first phase of the diesel subsidy program, aimed at countering the Iran war's impacts. They include Petrobras and Mataripe Refinery, supplying about 85% of national diesel, plus Sea Trading, Sul Plata Trading, and Midas Fuel Distributor. Major distributors Vibra, Ipiranga, and Raízen, controlling two-thirds of sales to stations and industries, chose not to participate due to uncertainties over rules and payments.
The government acknowledges these absences undermine the policy's effectiveness, offering R$ 0.32 per liter subsidy for sales below price caps. Diesel prices at pumps rose 24% since the war began. Technical adjustment talks, led by the Ministry of Mines and Energy (MME) and ANP, address payment methods, price volatility, and inventories to avoid 2018 judicial disputes from Temer's administration.
Finance Executive Secretary Rogério Ceron said in a CNN Brasil interview: "We will look a bit more carefully, dialogue with ANP, Ministry of Mines and Energy, and Civil House to check if actions are needed to [...] ensure any program adjustments for their adherence". Vice President Geraldo Alckmin advocated dialogue: "What is the government's guidance? Dialogue, clarify, and seek understanding with distributors".
Distributors have until Monday (6) to join retroactively from April 1. A further R$ 1.20 per liter subsidy is expected, totaling R$ 1.52 with the current one, pending a new provisional measure. ANP opened a public consultation on price-cap adjustments.
