Petrobras must seize the chance to enter the lucrative liquefied petroleum gas (LPG) market, also referred to as kitchen gas, as stated by CEO Magda Chambriard on Monday.
The company’s board recently approved Petrobras to start distributing LPG.
“Petrobras is considering the option of setting different prices for industrial and residential LPG users,” Chambriard mentioned in an online interview with Eixos.
The company aims to capitalize on the margin growth seen in recent years, which has surpassed the returns from pre-salt operations, according to the state president.
Petrobras may choose to pursue distribution as the market for LPG is starting to become disorganized again, according to Magda, who mentioned that the state is considering once more separating the pricing of industrial LPG from kitchen gas.
Petrobras aims to regulate the industry.
Magda also mentioned that Petrobras’ responsibility is to regulate the LPG market, which is a product that is imported and could potentially be substituted with natural gas.
Petrobras CEO stated the importance of getting involved in the lucrative LPG business to support and regulate the market.
Magda suggests that the agricultural industry is considering utilizing LPG for drying grains domestically. The logistics and pricing of natural gas have been enhanced, reducing costs for distributors. However, the increasing price of LPG in the industrial sector is seen as a market challenge, with Petrobras having a crucial role in optimizing the gas market.
