Gas prices in Belo Horizonte are on a downward trend, with some fuel stations already implementing lower prices. The reduction follows an announcement by Petrobras that the price per liter of gasoline at refineries will decrease by 5.6%, resulting in a cost of R$ 2.85 per liter, a reduction of R$ 0.17. This adjustment is now being reflected in prices at local gas stations, impacting consumers directly. The final price for consumers may vary depending on individual company negotiations. In Belo Horizonte, some stations have already lowered their prices in response to the announcement.
“It’s interesting for the market. Ethanol was becoming more competitive, and now, with this reduction, gasoline sales will increase. Despite distributors not always passing on the full price reduction announced by Petrobras, we absorb some of the cost for competitiveness and market positioning. The more volume I sell, the better for the company,”
explained Giuliano Carvalho de Paula, operational director of a network of 15 gas stations.
Individuals reliant on fuel for work and transportation, like physical educator Hudson Fernandes and ride-hailing driver Gustavo Silva, welcome the price drop. Fernandes, who typically opts for ethanol due to its lower cost, sees the gasoline reduction as a significant saving, especially given his high mileage. Silva, who exclusively uses gasoline for its efficiency, views any discount positively, given his profession’s reliance on fuel.
Economist Paulo Casaca from the UFMG Institute of Economic and Administrative Research shared insights on the broader implications of the gasoline price reduction. Despite higher state taxes in Minas Gerais, Belo Horizonte is expected to align with national price trends. Casaca highlighted how reduced gasoline prices impact the daily lives of the population, influencing not only fuel expenses but also the overall cost of goods, potentially curbing inflation. Gasoline price reductions can have a cascading effect on various sectors, given its significant weight in inflation calculations.
“When there is a reduction in gasoline prices, it not only benefits those refueling their vehicles but also trickles down to the prices of goods sold in stores. Items have distribution costs that include transportation expenses. Gasoline, being a major component in inflation calculations, is poised to alleviate inflationary pressures,”
elaborated economist Paulo Casaca.
The price of gasoline reflects a complex composition, including Petrobras’ production costs, distributor margins, gas station profits, ethanol blending, and federal and state taxes. Petrobras estimates a reduction of around R$ 0.12 per liter for regular gasoline at the consumer level due to these factors. Despite the multiple elements influencing gasoline prices, the announcement signifies a tangible relief for consumers and potentially a broader economic impact.
Gasoline consumers in Belo Horizonte can expect to see continued adjustments in response to market dynamics and global oil fluctuations. As fuel prices play a crucial role in daily life and economic activities, these reductions are poised to ease financial burdens for consumers and potentially contribute to broader economic stability. The intersection of fuel pricing, consumer behavior, and economic indicators underscores the interconnected nature of market forces and individual livelihoods.
