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News > Brazil

Brazilians Protest Against Privatization of Refinery in Ceara

  • Lubnor refinery in Ceara, Brazil.

    Lubnor refinery in Ceara, Brazil. | Photo: Twitter/ @redebrasilatual

Published 27 June 2023
Opinion

The Lubnor refinery was sold for US$34 million, a figure that represents a 55 percent decrease from its market value.

On Tuesday, Brazilian oil workers will hold protests against the sale of the Lubnor Lubricants and Derivatives Refinery located in the state of Ceara.

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Amid unresolved legal disputes, Lubnor was sold to the Grepar Participações group in 2022 for US$34 million, a figure that represents a 55 percent decrease from its market value.

"Lubnor is responsible for supplying local distributors with diesel, gasoline, aviation kerosene, and LPG from other refineries, terminals, transported to Fortaleza by ships, in coastal operations or, eventually, imports," said Deyvid Bacelar, the coordinator of the Unified Federation of Oil Workers (FUP).

"The sale of Lubnor could result in a shortage of these ships, negatively impacting exports and imports," he added.

The tweet reads, "Oil workers will strike across Brazil against the sale of the Lubnor refinery in Ceara."

Sindipetro-CE/PI President Fernandes Neto warned that the privatization of Lubnor will lead to the creation of a monopoly that will harm the population in the state of Ceara.

"A private company does not commit to supplying the domestic market. It will prefer to export its products if that is more profitable. Petrobras' priority is to supply the domestic market," he said.

Lubnor employs over 500 workers and is responsible for approximately 10 percent of asphalt production in Brazil. It also produces naphthenic lubricants, which are used in the thermal insulation of high-voltage transformers, vehicle shock absorbers, and pneumatic equipment.

Besides supplying all northeastern states of Brazil, Lubnor is responsible for providing derivatives to the states of Amazonas, Amapa, Para, and Tocantins.

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