By Brazil Stock Guide – Petrobras (PETR4.SA) said private fuel importers are redirecting diesel cargoes originally bound for Brazil to other markets, underscoring strains in global supply chains following the outbreak of conflict in Iran.
Chief Executive Officer Magda Chambriard said on Wednesday (March 18) that the company identified at least six third-party vessels that had been scheduled to deliver fuel to Brazil but altered their routes, some after approaching Brazilian ports. “Petrobras’ competitive intelligence monitored six third-party vessels directed to Brazil. Some came close to Brazilian ports and had their destinations diverted,” she said.
According to Chambriard, cargo owners are likely seeking higher-priced markets amid tightening global diesel availability. The situation has increased uncertainty over domestic supply, prompting Petrobras to boost refinery output to compensate. “The company has been doing everything possible to expand fuel production at its refineries,” she said.
Still, Petrobras acknowledged structural limitations in meeting domestic demand through imports. “Our import capacity does not meet all of Brazil’s demand. That needs to be said. Why did this happen? Because at a certain point the Brazilian state decided Petrobras would not be alone in this market,” Chambriard added.
Domestic fuel prices remain below import parity, creating challenges for private importers. On Wednesday (March 18), diesel sold by Petrobras refineries was priced about R$2.15 per liter below international parity, according to industry data. Gasoline showed a gap of R$1.33 per liter.
Industry groups including Abicom, IBP and Brasilcom called on the government to adjust diesel prices, arguing that current levels make imports economically unviable. In a joint letter, they said “the most sustainable path for the sector involves price alignment with international markets, regulatory predictability, healthy competition and policies that ensure balance between supply and demand.”
The organizations described Petrobras’ recent price adjustment as “a partial response” to market conditions. Sindicom, which represents major distributors, also urged the continuation of additional fuel auctions to support domestic supply.
Market participants have reported rising demand alongside reduced supply allocations and rejected requests for additional volumes. Concerns over April supply have intensified after Petrobras canceled planned fuel auctions earlier in the week to reassess market conditions.
The company said it is delivering volumes about 15% above contracted levels and has postponed scheduled refinery maintenance to sustain output during the ongoing global disruption.