Morgan Stanley says decontrol will slash Brazilian gasoline prices 13%
The US financial services firm Morgan Stanley has predicted Brazilian gasoline prices will drop 13% when Petroleo Brasileiro SA's monopoly over product imports ends Jan. 1.
By an OGJ Online Correspondent
RIO DE JANEIRO, Dec. 7 -- The US financial services firm Morgan Stanley Dean Witter & Co. has predicted Brazilian gasoline prices will drop 13% when Petroleo Brasileiro SA's monopoly over product imports ends Jan. 1.
But Morgan Stanley said diesel and natural gas prices will increase 27%, since they are subsidized. It said the federal government has not set tariffs for products, but they should be about 8%.
Petrobras will continue to own terminals and a 14,000 km pipeline network. Its fee structure for those is unclear. Petrobras has 10.1 million cu m of storage.
Some foreign companies are building their own terminals. The Dutch company Oiltanking was negotiating with Petrobras to build a terminal at Pecem in the northern state of Ceara. The Italian company ICD, in partnership with Vitoil, is building a $15 million terminal with storage of 110 million l. Decal plans a terminal at Suape in Pernambuco state.
In another development, the Senate approved the nomination of Sebastiao de Rego Barros as executive director of the National Petroleum Agency, which regulates Brazil's petroleum sector. He replaces David Zylbersztajn.