- The crude oil imports in 1Q03 increased 30% in relation to the previous quarter and about 38% in relation to the same period of last year. What was the reason for this rise?
- How did the invoiced price mechanism published by the Brazilian Government work in 2001?
 1. The crude oil imports in 1Q03 increased 30% in relation to the previous quarter and about 38% in relation to the same period of last year. What was the reason for this rise?
ANSWER
The reason was the preventive stockage due to the war in the Middle East (Iraq), since the region of the conflict is great producer of oil and, in case the war was longer, could have oil lack in the international market.
2. How did the invoiced price mechanism published by the Brazilian Government work in 2001?
ANSWER
On January 5, 2001 the Ministry of Finance and the Ministry of Mines and Energy published the joint Instruction 2 establishing criteria for the readjustment of invoiced prices for gasoline, diesel oil and LPG at the refinery gates as well as for other producers and imingers, to come into effect in 2001.
Price adjustments will be made on the 5th business day of April, July and October of 2001, using a coefficient based on the average of the daily price quotations for Brent crude in the international market in relation to the a reference price (R$ 55.00/bbl). The period considered as the basis for the price of Brent will be between January 1, 2001 and the last day of the month immediately prior to the month for readjustment.
Formula
Readjust
-ment =
Co-
efficient |
 |
 |
The average daily price of Brent crude, in
Reais from January 1, 2001 to the last day
of the month prior to the month established
for the price readjustment |
 |
 |
| R$55/bbl |
|
-1 |
 |
|
|
1 + |
Readjustment effectively conceded
in accordance with this coefficient
|
|
|
|
X 100 |
Example of the readjustment on April 6, 2001
 - Average prices of Brent from January 1, 2001 to March 30, 2001 *= R$52,0233/bbl
- Effective readjustment conceded in accordance to this Instruction = 0
Readjust
-ment
Co- =
efficient
April 1 |
|
X 100 = -5,41% |
*Price data up to March 26 2001
Example of the readjustment on July 6, 2001
- Average prices of Brent from January 1, 2001 to June 29, 2001= R$X/bbl
- Effective readjustment conceded according to this Instruction = -5.41%
Assuming that the government passes on the total reduction for the products; otherwise use the authorized coefficient
Re-
adjust-
ment =
Co-
efficient
July 1 |
|
X 100 |
The Readjustment Coefficient (RC) may only be different from the one indicated in the formula if:
|
 |
The price increase to be used for each oil
product is less than the RC |
|
|
 |
The price reduction to be used for each oil
product is less than the RC when the product
registers a negative PPE average value
during the previous quarter |
|
|
RSS Central
