Petrobras Suffers Growing Pains in Brazil’s Freed Up Fuel Market
- Company’s share of diesel imports shrank to just 2.2 percent
- Daily price adjustments designed to scare off new competitors
The Petroleo Brasileiro headquarters.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Zema, a 94 year-old retailer of toys and appliances in Brazil’s interior, has become an unlikely thorn in the side of state-controlled oil behemoth Petroleo Brasileiro SA.
This year Zema, which also runs gas stations, got its first fuel import license and joined a fast-growing group of new players that managed to, at least temporarily, squeeze Petrobras out of a market it has traditionally dominated. The margins that lured Zema and other players were attractive enough to undercut Petrobras and nearly erase its imports this year.