Import parity is a technical term that ended up becoming a topic of conversation at gas stations and in messaging groups. The confusion begins when the concept seems far removed from real life.
Below are frequently asked questions with objective answers, without economic jargon, focused on what actually affects gasoline, diesel, and LPG in Brazil.
What is import parity, in a few words?
It is a price reference that compares how much it would cost to import a fuel — considering international prices, exchange rates, and logistics costs — with the price practiced in the domestic market. It serves as a “thermometer” to assess whether importing makes sense at a given moment.
Is import parity the same as the international price?
No. The international price is just part of the calculation. Parity includes other components:
- Crude oil or refined product prices abroad - The dollar against the real - Maritime freight and insurance - Port and internalization costs
That is why, even with a stable barrel price, parity can rise or fall.
If Brazil produces oil, why does parity matter?
Because producing oil is not the same as producing all the fuels the country needs. Brazil:
- Imports part of its diesel - Adjusts production according to refining capacity - Competes with the international market for ready cargoes
Parity helps ensure there is sufficient supply when local production does not meet demand.
Does parity automatically set the price at the pump?
No. It is a reference, not a price tag. Between parity and the pump, other factors come into play:
- Federal and state taxes - Distribution and retail costs - Mandatory blends (ethanol and biodiesel) - Commercial strategies along the supply chain
The effect at the pump can be diluted or delayed.
Why does diesel feel parity more than gasoline?
Because diesel has a higher dependence on imports in Brazil. In periods of strong demand, such as harvest seasons and freight transportation, the need to import increases. This makes diesel more sensitive to exchange rate movements and external prices.
And does LPG fit into this logic?
It does, but with particularities. LPG also has a relevant imported share. Even so, contracts, regional logistics, and commercial policies strongly influence the final price, which explains large differences between regions.
Does parity explain all price increases and decreases?
Not by itself. It is one piece of the puzzle. Pump price fluctuations also reflect:
- Consumption seasonality - Inventory levels - Local competition among gas stations - Tax changes
Sometimes parity rises and prices take time to react; in others, the movement is faster.
In practice, how does the consumer perceive parity?
Indirectly. The most common signals are:
- More frequent adjustments when the dollar fluctuates sharply - Different paces between gasoline and diesel - Greater pressure during periods of high demand
Understanding parity does not make prices predictable, but it helps read the context when they change.
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