CADE holds debate on fuel market

On 13 November, the Administrative Council for Economic Defense (CADE) held a public hearing to discuss competition concerns regarding the fuel market sector. The initiative aims to deepen the assessment of possible entry barriers in a market considered strategic for the Brazilian economy and consumer welfare.

The meeting brought together experts, academics, regulators, consumer associations, civil society representatives, and companies across the fuel production, refining, distribution, and retail sectors. The contributions received will support the improvement of market monitoring and guide the agency's future decisions.

During the opening ceremony, Mr Gustavo Augusto, president of CADE, highlighted the importance of discussing the topic, and mentioned that the agency has been monitoring the fuel sector for a long time, covering refinery sales operations, as well as investigations of cartels and distribution practices. “It is time to have a more extensive debate, not only on competition matters, which are of interest to CADE, but also on the sector as a whole,” he stated.

Ms Joana Duarte, Regulatory Specialist at the Office of the Superintendent General for Antitrust Enforcement at the Brazilian Agency of Petroleum, Natural Gas, and Biofuels (ANP), presented ANP’s activities in the liquid fuel sector and highlighted its partnership with CADE. “We work together in several areas, which allows us to identify signs of harmful practices to the economic order. After our analyses, we send the cases to CADE for a proper investigation," she said.

In addition, Mr Fernando Alencar, substitute prosecutor at the Federal Prosecution Services at CADE (MPF/CADE), emphasised that the fuel market is essential to the economy, and, therefore, requires constant monitoring. Mr Alencar drew attention to two recurring problems: fuel adulteration and money laundering through resale, practices that directly affect competition and consumer welfare. “This is a sensitive sector, so we must all be alert,” he stated.

Ms Priscilla Rolim, Counsel for the Union, explained that documents sent to the Office of the Attorney General (AGU) motivated the request for public authorities to take action and fight anticompetitive practices in the fuel market. According to Ms Rolim, the material received indicated the need to investigate possible anticompetitive conducts, especially related to asymmetries in price transmission, which ultimately harm the end consumer.

At the closing session, President Gustavo Augusto stated that the contributions will be analysed. "We received valuable materials, with points that deserve reflection and others that need to be investigated. Overall, we have substantial content to study and, eventually, discuss with other public entities," he concluded.

The public hearing is available on CADE's YouTube Channel.