Brazil Cuts Gas Prices by Over 50% to Boost Re-Industrialization

The Brazilian government has announced plans to slash natural gas prices for domestic industry by more than 50%, aiming to boost re-industrialization across key sectors. Speaking at an event, Minister of Mines and Energy Alexandre Silveira described the policy reform as a 'historic milestone', saying it will provide vital breathing room for local manufacturing.

The current cost of natural gas in Brazil ranges between USD 12 and USD 14 per unit, which is up to four times higher than in countries like the United States. To drive down costs, the government plans to increase transparency in sector auctions, expand access to Petrobras-owned pipeline networks, and optimize offshore oil-well reinjection parameters.

The policy reforms also touch on broader national energy priorities, including eliminating energy subsidies and promoting sustainable domestic growth. Silveira emphasized that foreign capital from countries like the US, China, and Russia is welcome, but local value-addition must be prioritized over raw exports.