Brazil Slashes Industrial Gas Prices by Over 50%
Brazil's Ministry of Mines and Energy announced plans to cut natural gas prices for the industrial sector by more than 50%. The new policy aims to strengthen Brazil's industrial competitiveness, which has been hindered by high gas prices. Currently, natural gas costs between $12 and $14 per unit, but under the new plan, it will be priced at around $5.
The ministry cited concerns over declining demand and reduced industrial competitiveness as reasons for the price cut. Mario Menel, president of the Brazilian Association of Self-Generation Energy Investors, noted that gas prices in Brazil are four times higher than those in the US. Daniela Coutinho, vice president of the Brazilian Association of Large Energy Consumers and Free Consumers, stressed the importance of ensuring that lower-priced gas effectively reaches industrial users.
The government's measures include expanding access to pipelines owned by Petrobras, increasing gas reinjection into oil wells, and improving transparency in sector auctions. The new policy does not affect the gas distribution segment, which is operated by state concessionaires and regulated by state governments.