Platts begins publishing Brazil's ANP diesel price references for subsidies

Platts, part of S&P Global Energy, has started April 27 publishing daily diesel price references provided by Brazil's Oil, Gas and Biofuels Agency, or ANP, that are used as the cap for governmental subsidies in the country.

These prices come from a formula devised by ANP to calculate the most competitive diesel imports into the five different regions of Brazil: North, Northeast, Center-West, Southeast and South. The formula takes into account base levels set by the Ministry of Energy Mines, or MME, and daily movements from Platts assessments for import parity prices and DAP cargo US- vs all-origin spreads.

For importers, that formula considers those MME references plus the variation of select Platts IPPs for each specific region since March 18, on a weighted average, minus the DAP spread for all ports, all considering the base date as two business days prior. Domestic producers using local crude oil, on the other hand, still have that first MME reference as the price cap, as long as it stays lower than the formula levels.

At time of launch, Platts understands the composition of the weightings for the regional IPPs is as follows: the North with 78.53% from Itaqui, 18.29% from Manaus, 3.18% from Santos; the Northeast with 39.56% from Itaqui, 34.35% from Suape, 26.09% from Aratu; the Center-West with 42.86% from Betim, 42.25% from Paulinia, 9.63% from Araucaria, 5.27% from Cubatao; the Southeast with 31.75% from Paulinia, 25.97% from Maua, 15.05% from Duque de Caxias, 12.65% from Betim, 9.25% from Cubatao, 3.28% from Sao Jose dos Campos, 2.05% from Santos; the South with 59.87% from Araucaria, 34.18% from Canoas and 5.95% from Paranagua. Platts will endeavor to reflect and continuously update to the latest composition of the applicable weightings.

Brazil's federal government announced in March a subsidy program in an attempt to curb domestically the soaring international diesel prices stemming from the Middle East war. Platts will continue publishing the diesel price references as reported by ANP so long as these are available.

The following ANP price references will be added:

These references are published in Brazilian real per liter every day, and are available on S&P Global Energy Core.

Please send all comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com.

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