HomePublicationsInsightsAnd the diesel price hike has arrived…

And the diesel price hike has arrived…

This week, on December 6, Petrobras increased the price of diesel at refineries by 9,5%. This is yet another complicated news for the cargo transport segment, which has been suffering significant losses during this period of economic crisis in Brazil.

Petrobras' expectation is that, if the increase in diesel in refineries is fully passed on to gas stations, the price per liter will rise by 5,5% for the consumer.

The ANP periodically conducts a price survey at gas stations in the country. If the price pass-through forecast comes true, the value of diesel at the end of 2016 will be around R$ 3,31 / liter.

figure-diesel_2

* Estimate of diesel price increase at service stations, if the increase at the refinery is fully passed on to the consumer

Figure 1 - Evolution of the average price of diesel at service stations

Source: ANP / Analysis: ILOS

 

The fuel consumed by trucks is one of the most representative costs of road freight transport, especially when it comes to moving cargo over long distances. The impact of the increase in diesel is directly reflected in the operation of carriers. Some of these carriers will pass on the diesel increase to their customers, generating an increase in the final cost of the products. Others will not be able to increase the prices charged for freight, as the market is experiencing a drop in demand and carriers are struggling to find customers. Service providers that do not increase freight rates will again suffer from reduced margins, which has been going on for some time now.

At this moment, it is up to all managers involved with transport, whether from industries or service providers, to work to gain productivity in operations, seeking to optimize routes, reduce idleness of vehicles, consolidate loads, create circuits, perform scheduling, improve routing, efficiently manage your traffic centers, and hope the economy improves soon.

 

References

G1 – After two declines, Petrobras raises the price of gasoline and diesel at the refinery:http://g1.globo.com/economia/noticia/apos-duas-quedas-petrobras-eleva-preco-da-gasolina-e-diesel-nas-refinarias.ghtml>

ANP - Price Survey System:http://www.anp.gov.br/preco/>

ILOS – Billing of carriers downhill (Alexandre Lobo):https://ilos.com.br/web/faturamento-das-transportadoras-ladeira-abaixo/>

ILOS – Fleet reduction with the scheduling of the fractional distribution operation (Paula Arantes):https://ilos.com.br/web/reducao-da-frota-com-a-calendarizacao-da-operacao-de-distribuicao-fracionada/>

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Executive Partner of ILOS, holds a master's degree and a degree in Production Engineering from the Federal University of Rio de Janeiro (UFRJ). With more than 10 years of experience in the field of Logistics and Supply Chain, working on several projects, management and participation in research associated with the subject. She has more than 20 articles in newspapers, magazines, periodicals and congress annals, being co-author of several titles in the COPPEAD Collection by Atlas publishing house and in the Panorama Logístico Collection ILOS and CEL / COPPEAD.

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