Good morning! In this issue, Brazil’s plan to change its fuel matrix and become less dependent on diesel. Jair Bolsonaro visits Bahia under intense scrutiny. And the immense economic potential of Brazilian favelas. Enjoy your read!
Brazil’s plan to reduce its dependence on diesel
Mines and Energy Minister Bento Albuquerque revealed the government’s plan to stimulate the conversion of trucks from diesel- to natural gas-fueled engines. The expansion of the use of natural gas vehicle as a fuel (today limited to 2% of the country’s truck fleet) will be made possible, says the minister, through the opening of the gas market to private players, breaking Petrobras’ monopoly.
Why this matters. Replacing diesel with gas could, according to some truck manufacturers, reduce carbon dioxide emissions by up to 85%. Moreover, diesel prices—which are pegged to international crude oil prices—have been more volatile, leading to tensions between the government and truck drivers.
Hurdles. Gas-fueled vehicles have less autonomy than their diesel-fueled counterparts—and Brazil lacks the requisite fueling stations along roads. Moreover, the country has an aging truck fleet, with an average of 15.2 years. Truckers have struggled to acquire new models, with truck sales going almost exclusively to big freight operators, who...