By Brazil Stock Guide – Brazil is not facing a physical shortage of diesel, according to the country’s oil regulator, even as some market participants complain about difficulties receiving fuel deliveries.
Artur Watt, director-general of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), said Tuesday that the agency has not identified logistical bottlenecks or supply disruptions that could threaten national fuel availability.
“We have not mapped any shortage of product in Brazil. We are not seeing any physical bottleneck for national supply at the moment. We continue to monitor the situation closely, but we see no risk of shortage,” Watt said during a workshop on the opening of Brazil’s natural gas market held at Fundação Getulio Vargas in Rio de Janeiro.
Despite the regulator’s assessment, some transport fuel retailers have reported difficulties receiving diesel shipments. According to Watt, the complaints appear to stem from contractual issues between suppliers and distributors rather than an overall shortage of the fuel.
“But we are in close conversations with the agents to understand the complaints, especially from TRRs (Transporter, Reseller, Retailer). Their union reported that they are not managing to get the product delivered to them. We are seeing contractual issues related to delivery arrangements,” Watt said.
“We are staying very close to the situation, analyzing it and seeking to act so that the product does not run short.”
The regulator said it remains in direct contact with companies involved in the fuel distribution chain and is prepared to intervene if necessary to ensure that diesel reaches all market participants.
Market Conditions and Petrobras
Watt also addressed volatility in global oil prices driven by the conflict in the Middle East and its potential impact on Brazil’s domestic fuel market.
According to the regulator, inventories remain stable and deliveries are continuing normally at refineries operated by Petróleo Brasileiro SA (Petrobras) (PETR4 BZ; PETR3 BZ) as well as other refining companies in the country.
“We do not see any supply problem in the market,” Watt said.
Brazil currently imports between 20% and 30% of the diesel it consumes, making global market conditions a key factor in domestic fuel supply dynamics.
When asked about whether importers could reduce shipments if local prices remain below international benchmarks, Watt declined to speculate. He emphasized that Brazil operates an open fuel market with infrastructure and companies capable of importing diesel when needed.
Monitoring Supply
The ANP said it continuously monitors diesel inventories through digital reporting systems and tracks complaints from market participants regarding delivery problems.
According to Watt, none of these complaints are dismissed. When necessary, the regulator deploys teams to verify conditions in the field and assess whether contractual obligations are being fulfilled.
“Teams are currently operating in southern Brazil to monitor the market,” Watt said, referring to the region where the highest number of complaints about diesel delivery has been reported.