CNG breaks historic price record in November, says OSP

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Vehicle natural gas (CNG) broke a historic record this November, being sold at R$ 4.256 per cubic meter, 39% above the historical average (in real values) of R$ 3.06. In October, the gasoline, O diesel it’s the cooking gas had already reached its highest value since 2001.

The data are from the Petrobras Social Observatory (OSP) Price Monitor and show that CNG began to break records in real terms in May this year, based on the 39% increase promoted by Petrobras, reaching a cost of R$4.02. The climb was halted in October as inflation exceeded the nominal increase.

On Wednesday (10), the association representing piped natural gas distributors, Abegás, announced that Petrobras has made offers with an increase of up to 200% in the price of the input for new contracts next year, which could raise even more the fuel used primarily by taxi drivers and apps.

“Along with the appreciation of the barrel of oil and the devaluation of the exchange rate, two factors that index contracts with distributors, we started to have record prices as of May 2021”, said economist Eric Gil Dantas, from the Brazilian Institute of Political and Social Studies (Ibeps) and OSP.

Throughout 2020, Petrobras’ natural gas prices fell 35%, but rose again at the end of last year, following the recovery of the oil barrel (Brent) and the devaluation of the real.

The CNG value is based on the application of the formulas in the supply contracts, which take into account the quotation of the Petroleum, the exchange rate and the revision of the transport installment, transferred by the company. The update of contract prices takes place every three months.

Conversion

Even with the high price, vehicular natural gas is still the cheapest fuel on the market, according to OSP. Because of this, many Brazilians chose to convert the car to CNG.

According to a survey by the National Traffic Secretariat (Senatran), between January and September 28 this year, 163,168 vehicles changed their fuel, an increase of 88.5% over the same period in 2020.

Rio de Janeiro is the main consumer market for CNG. The state accounts for about 60% of the volume of natural gas in vehicles in Brazil, with 24% of its fleet using the fuel. Across the country, only 2% of vehicles are fueled with CNG.

Reference: CNN Brasil

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