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Brazil on alert over protests at oil refineries, guarantees fuel supplies – Platts

  • Moves to protect refineries from protesters
  • Far-right radicals tried to block oil refineries, roads in at- least four states
Petrobras’s Duque de Caxias refinery.(Petrobras)
Petrobras’s Duque de Caxias refinery.(Petrobras) Supporters of former Brazilian president Jair Bolsonaro are organizing protests and blockades at refineries owned by the state-controlled oil company Petrobras, seeking to disrupt fuel supplies -Argus

Jeff Flick, Platts S&P Global

RIO
EnergiesNet.com 01 10 2023

Brazil’s Mines and Energy Ministry and state-led oil company Petrobras guaranteed refinery operations and fuel-distribution services across Latin America’s biggest country amid threats of supply disruptions from protesters linked to former president Jair Bolsonaro.

Federal, state, and military police were sent to guard the entrance and exits of several key refineries and supply terminals in Amazonas, Minas Gerais, Parana, Rio de Janeiro, Rio Grande do Sul, and Sao Paulo states, according to government and police officials. The moves followed threats of disruption and violence by supporters of former president Jair Bolsonaro, who lost a second-round runoff to President Luiz Inacio Lula da Silva, or Lula, in October.

Bolsonaro’s supporters, who falsely claim the election was stolen, invaded Brazil’s Congress, Supreme Court and Planalto presidential palace in Brasilia Jan. 8.

The Mines and Energy Ministry “guaranteed normal national fuel supplies and the adequate functioning of refineries, terminals and distribution bases,” Minister Alexandre Silveira said in a statement late Jan. 8. “In addition to monitoring the status of protests, we remain vigilant and in contact with other entities and states to ensure supplies.”

State-led oil company Petrobras also confirmed that refineries were operating normally as of Jan. 8.

“Refineries are operating normally,” Petrobras said in a statement Jan. 8. “Petrobras is taking all preventive measures according to standard procedures.”

In addition, Brazil’s National Petroleum Agency, or ANP, also has kept in place emergency measures designed to facilitate the flow of refined products that were implemented after October’s presidential elections. Independent truckers briefly set up roadblocks to protest the election’s results at the time, but federal police were able to quickly remove the barricades.

Under the emergency order, the ANP suspended requirements that distributors hold minimal stock levels and allowed distributors, retailers, and logistics companies to work more closely together to ensure supplies. The measures were expected to end Nov. 18, but were extended until after Lula’s inauguration, which took place Jan. 1, amid concerns about supply disruptions.

The violence exploded Jan. 8 in Brasilia, the country’s capital, after Bolsonaro supporters who had set up camp inside the city since the election attacked the three pillars of Brazil’s democracy in an effort to get Bolsonaro reinstated. More than 1,200 people were arrested, according to federal police.

Brazil’s Supreme Court ordered the camp and others like it spread across Brazil’s major cities to be abandoned and dismantled. Many of the camps were set up outside military police headquarters, with supporters calling for the military to remove Lula and install Bolsonaro as the country’s president.

Bolsonaro, who left the country shortly before Lula’s inauguration, is currently in Florida.

Brazil’s refineries produced 60.63 million barrels of diesel, gasoline, and other refined products in November, down 3.0% from 62.535 million barrels in October, according to the latest production report from the ANP. November’s output, however, advanced 0.7% from 60.194 in November 2021.

spglobal.com 01 09 2023

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