Insight
How Petrobras' price floor and ceiling mechanism will affect the LDC market
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Report summary
Following the outbreak of the conflict in the Middle East, GSA's prices with local gas distributors increased by nearly 25% from February to May. Against an uncertain outlook through year-end, gas distributors sought greater price protection, leading to the introduction of Petrobras' price floor-and-ceiling mechanism for firm contracts from August 2026 through January 2027. Thereafter, only the price floor will remain in place until January 2029. We analyzed the first contracts published by ANP on 29 July 2026.
Table of contents
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Executive summary
- What happened
- The mechanism
- What changes in the next 6 months
- However, the price floor limits downside in 2028+
- Managing risks and expenditure predictability
Tables and charts
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What's included
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