Petrobras updates natural gas prices for distributors

According to the contracts signed by the company and distributors, Petrobras will grant an average 1% reduction in the selling prices of natural gas molecules compared to the previous quarter. The new prices will come into effect as of 02/01/25.
 
The contracts with distributors stipulate quarterly updates on the gas molecule pricing and link such a variation (increase or decrease) to the fluctuations in Brent oil and the BRL/USD exchange rate. For the quarter starting in February 2025, the reference oil (Brent) dropped 6.0%, and the exchange rate depreciated by 5.3% (that is, the amount of reais to be converted into one dollar has increased by 5.3%).
 
Accumulated Drop

Since December 2022, the average price of the molecule sold to the distributors has accumulated a reduction of up to 23%, including the effects of the 1% reduction in February 2025 and the introduction of performance prizes and demand incentives approved in May and October 2024, respectively.
 
“Petrobras works to provide our clients with a commercial portfolio of increasingly competitive products that can compose the most suitable portfolio for your needs. We estimate over USD 7 billion worth of investments in new infrastructures to supply natural gas, besides offering different contract options with a broad range of deadlines and indices,” says Maurício Tolmasquim, the Energy Transition and Natural Gas Director.
 
Petrobras affirms that the natural gas end price for consumers is determined not only by the company’s molecule selling price but also by the cost of carrying it to the distributor, by each distributor’s supply portfolio, by their margins (and, for VNG—Vehicle Natural Gas—by the resale stations), and by federal and state taxes.
 
Furthermore, consumer charges are passed by the state regulatory agencies according to the law and specific regulations. The company also mentions that the update announced on 02/01/25 doesn’t refer to the LPG (cooking gas) sold in tanks or bulk.