In 2024, Petrobras was the leading company in the oil and gas sector in Brazil, with a revenue of nearly billion Brazilian reals. Raízen followed in second, but with a large margin, generating approximately billion reals in revenues.
A tale of one company
Upon its establishment in 1953, Petrobras, the state-owned Brazilian multinational corporation, was given a legal monopoly over oil exploration in the country. More than two decades after this monopoly was officially put to an end, however, the company’s firm grip on the sector can still be seen. In 2023, Petrobras’ crude oil production reached nearly billion barrels, roughly times more than its nearest contender, Equinor Brasil. In addition, that same year, the oil giant accounted for essentially all the refinery capacity in the country, with an over percent share. The oil refinery construction process is a multibillion-dollar operation spanning several years, which poses a high barrier of entry for potential competitors.
Fierce competition for distribution
While no other companies have been able to compete in the Brazilian oil exploration and refining sectors, when it comes to fuel distribution, the national corporation is slightly less hegemonic. Although Petrobras – through its former subsidiary Vibra Energia (BR Distribuidora) – remains the leading fuel distributor in Brazil in nearly every sector it operates in, competition has slowly tightened over the years. In the diesel fuel and gasoline segments, its two closest rivals – Raízen, the licensee of Royal Dutch Shell in Brazil, and Ipiranga, a part of the Ultrapar group – each hold around one-fifth of the market. In addition, the overall market share of smaller players has continually increased in the second half of the past decade.