Brazil's irregular fuel market amounts to 13 billion liters per year: Report

About 13 billion liters of fuel sold annually in Brazil is done so in an irregular way, according to estimates by top distributor Vibra Energia in partnership with the McKinsey consultancy.

Tax losses from the fuel sold irregularly amount to around 14 billion reais ($2.48 billion) per year, according to figures presented by Vibra to investors on Thursday.

In 2023, Brazil sold around 149.5 billion liters of fuel, according to data from regulator ANP. Vibra did not specify if the 13 billion are part of that total, or detailed how it reached the figure.

The firm's comments come amid statements by authorities that Brazil's largest crime gang, Primeiro Comando da Capital - commonly known as PCC - was behind fires in sugarcane plantations, seeking to retaliate against measures to combat the illegal trade in adulterated fuels.

"The problem has reached a new level ... it's a problem for the country, you have governors, ministers talking about this issue," said Vibra's Chief Executive Ernesto Pousada.

Pousada said the firm has opened offices to deal with the issue, and is pushing for changes in Brazil's laws to make it harder for fuel distributors to evade taxes.