THE MARKET OF LPG (LIQUEFIED PETROLEUM GAS) IN BRAZIL: A BRIEF STRUCTURAL, INSTITUTIONAL, HISTORICAL PERSPECTIVE

Abstract

In Brazil, the liquefied petroleum gas (LPG) sector has experienced profound changes in recent decades. Its distribution and its selling prices have long been highly regulated. In the following economic liberalization reforms of the 1990s, its prices were deregulated in 2002. However, the concentration of distribution was high. The application of antitrust law could therefore become crucial for consumers. The market continued to grow after the liberalization with the dissemination of LPG among Brazilian households. But the recent antitrust proceedings, some based on the analysis economic, the others on direct evidence, reveal that mergers between dominant firms can undermine competition and that cartels can develop.