By Brazil Stock Guide – Brazil’s Minister of Mines and Energy Alexandre Silveira said Wednesday (11) that the country faces no risk of fuel shortages, even as global tensions in the Middle East raise concerns about potential impacts on energy markets.
Speaking to reporters, Silveira said Brazil’s fuel supply remains stable and that the government is closely monitoring price movements in the domestic market.
“There is no possibility of fuel shortages at gas stations,” Silveira said. “What exists is criminal speculation by distributors and retailers. We will apply the appropriate fines, increase inspections, carry out operations and involve the Federal Police.”
The minister said authorities plan to strengthen oversight of fuel distribution and retail networks to prevent what he described as abusive pricing practices. The government may impose penalties on companies found to be raising prices without justification.
Silveira also criticized the privatization of BR Distribuidora, the former fuel distribution arm of Petrobras (PETR4 BZ / PBR US), which was completed under the administration of former president Jair Bolsonaro. After the privatization, the company was rebranded as Vibra Energia (VBBR3 BZ).
According to Silveira, Petrobras’ exit from the distribution sector reduced the state’s ability to influence prices in the domestic market and support lower fuel costs for consumers.
“Today we would be able to guarantee supply at even better prices for gasoline, diesel and even natural gas consumers,” he said. “Unfortunately, the previous government sold BR Distribuidora. We have a strong intention of returning to the national distribution sector.”
Silveira said the government is considering a potential return of Petrobras to the fuel distribution market. However, he noted that contractual restrictions currently limit such a move.
“There is a clause in place until 2027, it seems. But it is essential that we return,” he said.
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