en.Wedoany.com Reported - José Luiz Rocha, president of the Brazilian Association of LPG Retailers (Abragás), advocates that large LPG retailers should be authorized by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to serve as LPG cylinder filling bases.
The proposal has been submitted to the ANP within the framework of discussions on LPG reform, the key points of which were presented at a meeting on May 29 and are set to be discussed again on the board's agenda this Friday (June 12). The filling proposal has been rejected but is expected to end distributors' exclusive filling rights. Among other measures, the ANP may recommend authorizing agents to fill any LPG cylinder in circulation.
Currently, each distributor controls containers of its own brand. The Distributors' Association (Sindigás) states that the ANP's reform would promote unfair competition by allowing the filling of other brands. Abragás argues that in retail outlets capable of storing at least 12,000 kilograms of product (i.e., Class V retail outlets), safety rules follow stricter standards. Classification ranges from I to VII, with a special category for businesses storing over 99,800 kilograms of LPG.
In an interview with agência eixos, Rocha stated that Class V and above retail outlets can provide the same safety guarantees currently offered by distributors when filling LPG. According to Abragás, retail outlets falling into this category account for approximately 15% of the 60,000 authorized retail outlets nationwide. Rocha clarified that the opening applies only to large retail stores, not to filling at gas stations. He argues that the notion that liberalizing remote filling would fuel organized crime is untenable, as illegal retail outlets already operate underground and do not even meet safety requirements.
Rocha explained that authorized retailers purchase full cylinders only from distributors, while informal retailers buy from resellers. The issue of organized crime infiltrating the sector has already become a reality, unrelated to the adoption of new rules. In a presentation made by the ANP's technical department at the May 29 meeting, Director Diogo Valério emphasized that the regulatory measures proposed in the reform are stricter than current rules, including controlling cylinders through serial numbers and obtaining invoices. The use of serial numbers is also considered by Abragás to be the most suitable solution for tracking cylinders, rather than engraving brands on containers. According to the association's survey, approximately 40% of cylinders in circulation on the market are already numbered, laying the groundwork for initiating the tracking process through this model.
Regarding the costs of the recertification process, Abragás proposed to the ANP that all agents involved in cylinder filling, including any authorized large retail outlets, should be responsible. Rocha pointed out that under the current model, the cost of recertification is already included in the price at which distributors sell cylinders, indirectly paid by consumers. For Abragás, ending distributors' exclusive filling rights and adopting a new tracking system will help eliminate barriers to entry in the LPG distribution market. José Luiz Rocha concluded that retailers want to break free from constraints and have the freedom to choose their suppliers.
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