Fuel Price and Margin Monitoring Measures
The Brazilian Petroleum, Gas and Biofuels Institute (IBP) expresses its strong concern regarding recently announced government measures aimed at monitoring profit margins in the fuel distribution sector, particularly Decree No. 12,930, which regulates subsidies for diesel and LPG imports.
The initiatives recently introduced under the “Emergency Domestic Fuel Supply Regime” significantly expand government intervention in the business dynamics of a sector that depends on regulatory predictability, tax neutrality, competitive neutrality, and legal certainty.
As is widely recognized, the recent fluctuations in crude oil, diesel, and gasoline prices reflect heightened global geopolitical volatility. This environment requires measures that foster stability and provide economic agents with the confidence needed to operate efficiently and maximize their operational potential.
While efforts to ensure fuel supply security and competitiveness are welcome, it is important to emphasize that government interventions aimed at monitoring business activities and controlling prices—as demonstrated by past experiences—tend to generate market distortions, competitive asymmetries, and commercial uncertainty. Such measures may discourage business activity, reduce market diversity, and ultimately affect the availability of products necessary to ensure an adequate national fuel supply.
With respect to fuel price formation in Brazil, IBP reiterates that the market operates under a free and competitive framework across all segments of the supply chain. The final price paid by consumers depends on a range of factors beyond commodity quotations, including logistics, storage, biofuel blending requirements, tax burdens, hedging strategies against exchange-rate and international price fluctuations, and the commercial policies adopted by each market participant—from producers and importers to distributors and retailers.
Furthermore, the economic subsidy established under Provisional Measure No. 1,340/2026, as amended by Provisional Measure No. 1,349/2026, already provides authorities with access to the tax invoices of companies requesting subsidy payments, subject to the appropriate confidentiality safeguards, for the purpose of verifying compliance with the legal requirements. Therefore, the public disclosure of such information is both unnecessary and unjustified.
The publication of individualized weekly gross margin data for market participants for monitoring and control purposes violates the constitutional principles of free enterprise and free competition. It is also inconsistent with various legal frameworks governing economic freedom and capital markets.
Such measures may produce adverse effects on the fuel market, whether through increased legal and regulatory uncertainty—particularly given that the Provisional Measures themselves may be amended or rejected—or through damage to competitive neutrality resulting from the disclosure of strategic and commercially sensitive information. In addition, the perception of discretionary government intervention in the sector may ultimately affect investment, import, trading, and infrastructure decisions, creating long-term risks for fuel supply security.
