Brazil bunker fuel market enters new phase of uncertainty

The Brazilian marine fuel market is undergoing a significant shift following Petrobras’ decision to suspend the public publication of bunker fuel prices at the country’s ports.

Instead of updating prices continuously throughout the day, the Brazilian state-owned oil company will now provide quotations only through firm commercial inquiries, with expected delivery windows of approximately 20 days.

For shipowners, charterers, and operators navigating routes across the South Atlantic and the Gulf of Mexico, this adjustment introduces a new level of uncertainty in bunker fuel planning and operational budgeting.

What Exactly Has Changed?

Historically, Petrobras has been the primary supplier of marine fuels in Brazil, publishing benchmark prices that allowed operators to estimate bunker costs in key ports such as Santos, Rio de Janeiro, and Paranaguá.

The company is now modifying that system in several important ways:

• End of real-time price updates Marine fuel prices will no longer be updated publicly during the trading day.

• Quotes available only upon request Buyers must submit a firm commercial inquiry to receive a fuel quotation.

• Price updates after market close Benchmark prices will now be updated only after the trading session ends.

• Longer delivery expectations Fuel supply is expected to take approximately 20 days after a quote is issued, requiring more advanced planning by operators.

Why the Strategy Is Changing

The decision appears to be connected to the high volatility currently affecting global oil markets.

Geopolitical tensions and supply disruptions have caused rapid movements in fuel prices. Under these conditions, maintaining publicly visible bunker prices throughout the day can expose suppliers to sudden financial risk.

By quoting prices only after receiving firm requests, Petrobras gains greater flexibility to manage inventory allocation, price exposure, and supply commitments.

Recent Price Movements in the Americas

Fuel prices across the Americas have risen sharply.

According to Argus, in the past week alone:

• Marine Gas Oil (MGO) in Santos increased approximately 33%. 

• MGO prices in Panama climbed about 62%. 

• New Orleans recorded increases close to 62.5%.

Although Brazilian prices have also moved upward, the pace of increases has been more moderate compared with other regional bunkering hubs.

At the same time, the VLSFO crack spread in Santos fell to its lowest level since September 2024, with similar market signals observed in Rio de Janeiro and Paranaguá.

Brazil bunker fuel market enters new phase of uncertainty

Understanding the Main Marine Fuels

Two fuels dominate most marine operations today:

Very Low Sulfur Fuel Oil (VLSFO) Introduced after IMO 2020 sulfur regulations, VLSFO contains less than 0.5% sulfur, making it the standard fuel for large commercial vessels such as tankers, container ships, and bulk carriers.

Marine Gas Oil (MGO) MGO is a distillate fuel similar to diesel, commonly used in offshore vessels, tugboats, patrol vessels, and ships operating in emission-controlled areas.

Because MGO is more refined, it typically carries a higher price per ton but offers cleaner combustion and easier engine management.

For tugboats, offshore supply vessels, and service vessels, fuel consumption can be significant. 

A medium offshore vessel may burn 5 to 15 tons of fuel per day, while larger supply vessels or anchor handlers may consume 20 tons or more depending on operational load.

Even small price movements in bunker fuel can therefore have a substantial impact on operational costs, making early planning increasingly important.