CADE launches study on liquid fuel distribution and resale

On 8 April, the Administrative Council for Economic Defense (CADE) published the 24th edition of the series Cadernos do CADE. The publication presents an analysis of liquid fuel distribution and resale markets in Brazil, gathering sector data, regulatory development, and the authority’s performance in merger cases and anticompetitive practices.

This edition extends the study launched in 2014 which covered the fuel retail based solely on jurisprudence from 1996 to October 2013. The second edition broadened the scope to include ethanol and diesel, besides the distribution sector, analysing cases reviewed between 2013 and 2021.

The release updates CADE’s jurisprudence until 2025, incorporating recent data on markets and regulatory changes. In addition, it describes the structure of the production chain in the oil sector, especially the upstream and downstream segments, that include refining, distribution, and resale.

The wide and updated picture of the sector highlights that, although strongly regulated, this market is dynamic and prone to institutional, technological, and tax changes. In this context, CADE underlines the relevance of an accurate analysis, aligned with other regulatory bodies.

Brazilian overview

According to the disclosed data, Brazil had 301 authorised distribution bases, with nominal capacity of 7.9 million cubic metres in 2024. In the same period, about 134.3 million cubic metres were commercialised, and the retail sector operated 44,973 petrol stations; with 48.2% classified as independent fuel stations. The distribution of relevant volumes of petrol and diesel remains concentrated among few players.

Regarding merger reviews, CADE investigated 81 transactions involving the distribution and retail segments between November 2013 and December 2025. Among them, 76 were cleared unconditionally, two of them, with restrictions, one blocked, and two dismissed. Most of the cases were reviewed under summary proceedings, with an increase in the number of decisions from 2019 onwards.

Additionally, the research identified 29 administrative proceedings related to the repression of anticompetitive practices in the sector. Nineteen of those were convicted, nine were dismissed, and one was time-barred. Fines totalled more than BRL 1 billion (values updated to 2025).

Jurisprudence

The study also emphasises CADE’s competition advocacy, especifically after the publication of the document Repensando o Setor de Combustíveis: Medidas Pró-Concorrência, in 2018.

The recommendations and the subsequent expert opinions contributed to the improvement of public policies and regulatory changes through the dialogue with government bodies such as the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) and the Ministry of Mines and Energy (MME).

In sum, the document shows that the fuel distribution and resale markets in Brazil work strategically and are characterised by entry barriers and concentration in relevant stages of the production chain. Access the full study here!