CADE releases contribution to promote competition in fuel sector

On 26 November, the Administrative Council for Economic Defense (CADE) released a document that analyses the main contributions of the study Repensando o setor de combustíveis: medidas pró-concorrência, published in 2018. The objective is to identify the main regulatory, normative, and institutional discussions that occurred from 2018 to June 2025, as well as assessing the current implementation stage of each of the recommended measures.

The document addresses topics such as direct sales of ethanol, restrictions on vertical integration among distributors and petrol stations, import rules, availability of information to consumers, and improvements to access data for competition defence.

The Department of Economic Studies of CADE (DEE) also indicates the adoption of significant measures in recent years, including direct sales of ethanol by producers, permission for distributors to import fuel, as well as changes in tax collection, which reduced costs.

According to Tatiana Lima, Assistant Economist at CADE, contributions showed that despite the significant progress, there is more to be done in order to improve competition in Brazil's fuel sector. “We noted that some recommendations have not been implemented yet, such as the lack of transparency regarding economic ties between resellers, and limitations on access to tax data. However, at a recent public hearing held by CADE, the representative of the Agency for Oil, Natural Gas, and Fuels (ANP) stated that they are working on implementing this measure. This document is a way to contribute so other actions are can also development.” she said.

With this study, CADE reaffirms its commitment to promote fair competition, working continuously and jointly with regulatory bodies, the legislative branch, as well as other public entities, contributing to a more efficient and favourable market for consumers.

Click here to see the full document.