Gas Distributors Notified for Abusive Prices

Abusive Prices have been a growing concern in the piped natural gas and compressed natural gas (NGV) sector in Brazil.

Recently, more than ten distributors were notified to clarify discrepancies between the price reduction announced by Petrobras and the actual transfer to consumers.

With a 48-hour deadline to present details on price breakdowns, logistics costs, and commercial margins, the investigation seeks to ensure greater transparency in commercial practices.

In this article, we will explore the reasons behind this notification and the impact on the market and consumers.

Notification to Natural Gas Distributors

A notification to more than ten natural gas distributors piped and compressed natural gas (NGV) was implemented to ensure greater transparency and protect consumer rights.

A measure requires these companies to provide, within 48 hours, a detailed description of the composition of the prices charged.

This action follows a significant reduction of 14% in the price of gas by Petrobras, an amount that, surprisingly, was only partially passed on to the end consumer, resulting in a pass-through that varies between 1% and 4%.

This situation raised the suspicion of abusive prices, mobilizing the authorities to act quickly to clarify the issue.

• São Paulo Gas Company
• Brasiliano Gas Distributor SA

As reported by the main sources, the notification issued by the National Consumer Secretariat (Senacon) requires an explanation that allows for a clear understanding of price formation, including logistics costs, taxes and commercial margins.

Furthermore, we seek to preserve transparency in commercial practices.

This action reflects an important step in the effort to ensure that Brazilian consumers pay fair prices and that abusive practices are curbed.

Required Information and Response Deadlines

Piped natural gas and compressed natural gas distributors were asked to provide detailed information on pricing within 48 hours.

This report must include the price breakdown, logistics costs, taxes involved and commercial margins applied.

The purpose of this requirement is to investigate possible abusive practices and ensure transparency in commercial relations with consumers.

Price Composition

A transparent presentation of natural gas prices is crucial to ensure consumer confidence in the commercial practices of distributors.

The structure of price formation must detail each component, including the purchase price of the molecule, the transportation charges and the operating costs which, according to the ANP website, must be accompanied by supporting spreadsheets.

Furthermore, it is essential that commercial margins are justified so that the consumer understands the final value.

A difference of 32% the average price of the natural gas molecule supplied to distributors does not adequately reflect the transfer to the consumer, as highlighted in the Petrobras statement.

This information promotes greater clarity and allow the tracking of any abusive practices, as exemplified by the actions of Senacon regarding notification of distributors.

Logistics Costs

You logistics costs in the distribution of piped natural gas and CNG are crucial elements that affect the final price to the consumer.

Companies must report in detail their expenses with transport, which include freight and routes used.

Furthermore, storage is an important factor, as it involves infrastructure and security costs.

Another relevant aspect is the possible technical losses, which must be proven to ensure transparency.

It is recommended that distributors also clarify the distribution logistics, covering cargo insurance details.

This practice ensures that consumers have access to clear information about pricing.

Taxes and Commercial Margins

In the natural gas pricing process, transparency in the presentation of taxes such as ICMS, PIS, Cofins, and municipal taxes is essential.

These tax components, detailed in this link about price reduction, have a direct impact on the final cost to the consumer.

Furthermore, It is essential to highlight the individual margins applied by each distributor, ensuring the consumer has a clear understanding of which factors contribute to the price.

Without clarity on these details, consumers may experience significant price variations that are difficult to understand without the proper tax and commercial context.

Petrobras 14 Percent Reduction and Limited Pass-Through to Consumers

The recent reduction of 14% in the gas price announced by Petrobras raises questions about the practices of passing it on to the end consumer.

This Petrobras initiative was intended to provide economic relief to consumers; however, what we see in the market is a significant mismatch.

The distributors only passed it on between 1% It is 4% of the consumer discount, creating a notable discrepancy that caught the attention of Senacon .

Analyzing the reasons investigated, some reasons considered include:

• High logistics costs, which can directly impact the complete transfer to consumers.
• Profit margin policy of distributors, causing variations in transfer rates.

The lack of transparency becomes a crucial point in the investigation, as does the role of regulatory bodies in ensuring fairness and equity in the market.

Thus, while consumers wait to feel the promised relief, authorities intensify the charge on distributors, requiring detailed explanations to justify such a discrepancy between the initial proposal and the reality perceived by the consumer.

Abusive Prices cannot be tolerated in a market that seeks transparency and fairness.

The authorities' action is an important step towards protecting consumers and ensuring fair practices among gas distributors.