LPG: Why does Petrobras see a risk of de-slaughter?

According to Petrobras President Roberto Castello Branco, the risk of dissupply of cooking gas, also known as LPG (liquefied petroleum gas) is real.

The reason for this would be the increase in the gasoline tax – an attempt to save the ethanol industry. However, what Castello Branco does not make it so clear are the difficulties of the LPG segment in Brazil, in addition to the problems related to the exclusive supply of cooking gas by Petrobras.

Still, the President of Petrobras says that raising the Contribution Intervention in the Economic Domain (Cide) of gasoline would reduce demand, forcing the company to adjust the offer. Moreover, it is worth remembering that kitchen is equated with gasoline production. Therefore, when the volume of one is reduced, the other also reduces.

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