Brazil's Petrobras touts refining plan as Russian diesel imports jump
(Reuters) - Brazilian state-run oil firm Petrobras will double down on its strategy to maximize motor fuel from its local refineries even as it boosts imports of cheap Russian diesel, the company's top executive told Reuters on Monday.
The comments from CEO Jean Paul Prates follow June data showing that Brazil's foreign diesel purchases rose sharply in the month.
Brazil's total diesel imports rose nearly 13% in June to reach 1.08 billion liters, with Russian suppliers providing 64%. In previous months, their share of overall imports never reached half the total, Argus data showed.
"Russian diesel is coming in, it's here for whoever wants it," said Prates in an interview on Monday.
"If it's cheap, it's also good for Brazil."
Russia's diesel supplies have been sold at a discount in large part due to economic sanctions imposed by the United States and other wealthy democratic nations on refined products produced in the country in response to Russia's invasion of Ukraine.
Prates stressed that while cheaper diesel supplies are attractive, the imported motor fuel cannot replace local output.
He described current purchases of Russian diesel as "circumstantial."
Petrobras is reaping positive results from the maximum use of its refineries, he also pointed out.
The oil company raised the total utilization rate of its refineries in the second quarter to 93%, their highest level since 2015, according to Petrobras data.
"It makes no sense to leave a refinery at half capacity to make room for competitors," added Prates.
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