Petrobras Imports 1.2 Million Barrels of Gasoline Amid Demand Surge in Brazil

Brazilian state-controlled oil firm Petrobras has imported around 1.2 million barrels of gasoline in February from various origins, adding to supplies amid a surge in demand. The demand for gasoline has spiked after a difficult harvest for sugar cane, from which ethanol is derived. Most new cars sold in Brazil can now run solely on ethanol biofuel or gasoline, but the reduction in ethanol content per liter of gasoline has led to increased demand for the latter.

Key Takeaways:

Petrobras imported 1.2 million barrels of gasoline in February from various origins to meet the demand surge in Brazil.
The demand for gasoline has risen by 15 to 20 percent year-on-year so far in 2010, primarily due to a difficult harvest for sugar cane.
The Brazilian government's reduction of ethanol content per liter of gasoline from 25 percent to 20 percent has led to increased demand for gasoline.
Petrobras has adopted a strategy of making sporadic purchases at opportune moments to ensure a good price, which has turned out to be cheaper than producing gasoline from refinery capacity currently used for diesel and naphtha.
The company expects gasoline purchases from outside Brazil to cease once Brazil's main sugar cane-growing region, the Center South, begins its new harvest around April.
The increased demand for gasoline has led Petrobras to re-evaluate its refinery capacity, redirecting production towards diesel and naphtha.

Statistics:

1.2 million barrels of gasoline imported by Petrobras in February.
Demand for gasoline has risen by 15 to 20 percent year-on-year so far in 2010.
The reduction in ethanol content per liter of gasoline from 25 percent to 20 percent led to increased demand for gasoline.
Petrobras expects gasoline purchases from outside Brazil to cease once the Center South harves around April.

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