Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 106

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 106
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 the year and an increase in ethanol supply, the downward trend in international oil and gasoline prices impacted the Brazilian market and sustained demand growth on a year-over-year basis. Concerning diesel demand, the National Council for Energy Policies raised biodiesel mandates to 14% in 2024 and announced a 1% increase each year in order to reach the 20% mandate in 2030, resulting in diesel demand being roughly stable year-over-year. Jet fuel demand has been firmly ramping up in a post COVID-19 environment and with Brazilian income and jobs also rebounding but yet to recover to 2019 levels. Therefore, diesel and jet fuel demand rose 1.0% and 6.8% respectively year over year, However, gasoline demand declined 4.0%, reflecting the competitiveness of ethanol throughout 2024.
 

Annual Report and Form 20-F 2024 |
<{self.tag} alt="{self.alt}" src="{self.src}">CONSUMPTION OF SELECTED FUELS IN BRAZIL (mbbl/d)
  Source: Petrobras and EPE, 2024
 
According to the Ministry of Mines and Energy, natural gas demand inter-annual data year-to-date until September 2024 has increased by 3%, from an average of 61.2 million cmd in 2023 to 63.1 million cmd (does not include the gas used in the pipeline transport).
 Regarding natural gas consumption in power generation, in 2023, until November, Brazil experienced higher rainfall levels compared to the average of recent years. However, in December 2023 the trend reversed, leading to drier conditions. Although the reservoirs are not in a situation as critical as they were in some years of the last decade, natural gas power plants were dispatched in 2024 to meet both energy and capacity demands. The 3% increase in natural gas demand is due to higher consumption for power generation.
 On the other hand, the natural gas demand in the industrial and automotive sectors have decreased mainly due to substitution for biomass, biogas and ethanol.
 
Emissions Trading Worldwide
 As countries increasingly set net zero targets for carbon emissions to comply with the Paris Agreement, there is a growing recognition among governments on the need to implement policies that promote the decarbonization of the economy and reduce greenhouse gas (GHG) emissions. One such policy instrument is the implementation of a regulated carbon market system based on the cap-and-trade concept. This system sets a limit (a cap) on GHG