LatAm Oil & Gas: Brazil Fuel Gauge: Diesel at parity vs gasoline at 39% discount

Research evidence excerpt

LatAm Oil & Gas: Brazil Fuel Gauge: Diesel at parity vs gasoline at 39% discount

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LatAm Oil & Gas

Brazil Fuel Gauge: Diesel at parity vs

gasoline at 39% discount

Industry Overview

Tracking Brazil domestic fuel prices vs. import parity 11 May 2026

Our Weekly Brazil Fuel Gauge compares PBR diesel and gasoline prices to IPP, as PBR is Equity

Brazil's largest supplier, with ~70% of share. We also present the prices charged by Latin America

Acelen and Brava Energia, which have a presence in the downstream segment as well. Oil & Gas

International diesel prices down 11% WoW CaioResearchRibeiroAnalyst>>

International diesel prices quoted in BRL decreased by 11% WoW leading to a narrowing Merrillcaio.ribeiro@bofa.comLynch (Brazil)

of discounts to import parity. For diesel, including total import subsidies of R$1.52/liter, Leonardo Marcondes >>

we estimate the current prices to be at parity (vs. 14% discount in the prior week). Research Analyst

Excluding subsidies, the discount would be 29%. It’s worth highlighting that we exclude Merrillleonardo.marcondes@bofa.comLynch (Brazil)

the R$1.12/liter subsidy applicable to domestically produced diesel from the parity Nicolas Barros >>

calculation, as these subsidies do not alter PBR’s selling price, which continues to stand Research Analyst

Merrill Lynch (Brazil)

at R$3.65/liter. Another factor contributing to the narrowing of the discount was the nicolas.barros@bofa.com

sharp decline in USGC-Brazil freight rates, which have already fallen 63% from this

year’s peak and are now very close to pre‑war levels (Exhibit 5).

Exhibit 1: Trading at parity vs IPP

Gasoline discount at 39% PBR Diesel Import Parity over the past 3

On gasoline, international prices quoted in BRL decreased by 6% WoW. We estimate a years