Brazil fuel price abuse investigation

Brazil’s National Consumer Secretariat (Senacon) has initiated investigations into suspected abusive pricing at fuel stations following reports from the National Agency of Petroleum, Natural Gas and Biofuels (ANP). The investigation, identified as ‘Operation Carga Pesada’, was prompted by approximately 330 consumer complaints regarding profit margin increases that reportedly exceeded 70% in certain regions.

Senacon has opened 70 administrative processes against various stations, primarily in São Paulo, Rio de Janeiro, Espírito Santo, and Paraná. The investigation focuses on unjustified increases in profit margins rather than the final pump price. Under the Consumer Defense Code, the investigated entities face potential fines of up to R$ 14 million and have been granted 15 to 20 days to present formal defenses.

In a significant escalation, the ANP has imposed more than R$ 200 million in fines on fuel distributors for abusive price increases. Investigations revealed that in some instances, companies saw gross profit margins rise by more than 1,350%. These penalties relate to conduct during the period of Provisional Measures No. 1,340 and No. 1,349, which were intended to address supply issues and curb price escalations.

Between September 22 and October 2, authorities expanded their efforts through a large-scale coordinated inspection across 14 states, conducting 532 actions including 283 gas station inspections and 249 notifications. This expansion has resulted in 129 administrative sanctioning processes. National Consumer Secretary Ricardo Morishita stated that increasing profit margins during periods of state effort to ensure citizen well-being is considered an abusive practice. Major distributors, including Vibra Energia S.A., Ipiranga, and Larco, have been notified and are facing deadlines to present defenses.