Brazilian demand for diesel soars despite price hikes

diesel prices
Photo: Joa Souza/Shutterstock

Diesel sales in Brazil have reached unprecedented levels — 7 percent higher than in early 2020 and 9 percent higher than two years ago. The surge comes despite prices at the pump being the highest in a decade, when accounting for inflation.

Per journalist Vinicius Torres Freire, a columnist for Folha de S.Paulo, the average wage in Brazil today is enough to buy 33 percent less diesel than it did before the pandemic.

Diesel is central to supply chains nationwide, as most cargo in Brazil is transported via trucks.

Weekly data gathered by the National Oil Agency (ANP) shows that the average diesel price has increased 37 percent over the past year — after discounting for inflation.