🔥 Pipeline politics

Good morning! A study from the Brazilian Forum on Public Safety (FBSP) highlighted that in 2022, the country’s organized crime groups raked in roughly four times more from the illegal sale of petrol than they did from selling cocaine. Weak national oversight in the fuel sector was among the reasons cited for this trend. 

A regulatory dispute that could alter Brazil's gas market 

A long-running dispute over the classification of the Subida da Serra Gas Pipeline (GSS) is approaching a crucial turning point. Operational since 2023, the pipeline connects the Port of Santos region to Greater São Paulo. Yet, federal and state regulators remain locked in disagreement over its status — a dispute that could have major implications for Brazil’s gas market.

• At the heart of the controversy is whether the pipeline should be classified as a transportation or distribution device. The National Oil Agency (ANP) insists it falls under federal jurisdiction as a transportation pipeline, while São Paulo’s state regulatory body Arsesp classifies it as a distribution network, which could place it under state oversight.

Regulatory battle. The dispute, which has dragged on since 2021, took a new turn when Supreme Court Justice Edson Fachin extended the deadline for out-of-court negotiations between stakeholders until March. Meanwhile, the Federal Prosecution Office has launched an investigation into the pipeline's impact on consumer prices.

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