Brazil's fuel supply crisis is imminent as a result of a continuing oil workers' strike.
Refined products stocks were running out last week, and refinery production was only 275,000 b/d vs. average consumption of 1.2 million b/d. The strike, which started Feb. 26, has paralyzed Brazil's refining system, shutting down six of 10 refineries (OGJ, Mar. 11, p. 40).
Stocks of gasoline and diesel are depleted at Araucaria refinery in Parana state and Paulinia in Sao Paulo state. Distribution companies supplied by the two refineries were expected to deplete products stocks at the end of last week. Petrobras officials expect supplies of gasoline, diesel, and naphtha to run out this week. Even if the strike ends soon, there will be a turnaround lag of 4 days to produce gasoline and liquefied petroleum gas-used mainly for cooking-and 3 days for diesel and naphtha.
Union organization Sindipetro said there are shortages of diesel fuel in Northeast Brazil because of depleted stocks at the Mataripe refinery and LPG shortfalls in Parana, Santa Catarina, and Rio Grande do Sul states.
Oil workers' unions at a Mar. 12 meeting rejected an offer by state oil company Petroleos Brasileiro SA to jump wages by as much as 50%. Workers are seeking a 161% wage increase, among other demands. Petrobras wants to have the strike declared illegal because it is disrupting essential services. It says it will continue to refuse the workers' demand for a 161% wage hike unless Brazil's congress passes legislation changing rules laid down under government antiinflationary measures.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
