1. ACCESS TO LP GAS FOR LOW INCOME HOUSEHOLDS Paolo Ditta - Liquigás October 2009

2. 2 Brazil: 8.5 MM km² 22 Brazil, a continental-wide country Europe: 10.4 MM km² 190 million inhabitants 730 million inhabitants

3. 3 LPG is present at 100 percent of Brazilian municipalities 33 LPG in Brazil * Source: IBGE and ANP 2008 Annual Consume per inhabitant 25.8 kg* Broader than Electric Power and Water 5,563 municipalities 37,000 Authorized Distributors

4. 4 LPG in Brazil Distribution under Normal Conditions 44

5. 5555 LPG in Brazil Distribution under Extreme Conditions Foto original Portability

6. 6 LPG Availability Since LPG is always available within the Brazilian Territory, why is its use so low?

7. 777 LPG in Brazil 200020012002200320042005200620072008 Consume directly related to income LPG P-13 Consume – million tons.P-13 Compared to Minimum Wage - %LPG Consume – Kg/inhabitant/year 5.04.9 4.7 4.6 4.84.8 4.8 4.9 4.9 13%10% 12%12%12% 10% 9%9% 8% 29.528.7 27.1 25.9 26.3 25.9 25.9 25.8 25.7 Source: Empresa de pesquisa energética - EPE |MINISTÉRIO DE MINAS E ENERGIA -MME

8. 888 LPG in Brazil Firewood in the Brazilian Energy Portfolio 48.2 35.1 26.2 26.5 1989199019911992199319941995199619971998199920002001200220032004200520062007 Firewood - %LGP - % Residential Sector Source: Balanço Energético Nacional 2008 |Year base 2006

9. 9 Lack of proper credit instruments Consume Barriers P-13 cylinder cost is high for low-income people

10. 10 Flex Stove Consume Barriers

11. 11 Flex Stove Consume Barriers

12. 1212 North and Northeast Consume Source: Authorized Fuel Distributors in accordance with ANP Administrative Rule ANP 202/99. Notes: Data source before 2006: Product Control Statement (Demonstrativo de Controle de Produtos - DCP). From 2007: Data from Products Movement and Information System (Sistema de Informações de Movimentação de Produtos – SIMP). Before 2006 information considers sales, including distributors’ consume. From 2007 only sales is considered. 200020012002200320042005200620072008 LPG Consume in thousands of tons NORTH NORTHEAST 339 343 324 297 307 310 321 361374 1,414 1,431 1,348 1,234 1,290 1,304 1,355 1,4011,453

13. 1313 LPG Consume Average Annual Growth Source: ANP North 2000-2005-2.30% 2005-2008+3.30% Northeast 2000-2005-1.96% 2005-2008+3.03% Southeast 2000-2005-0.20% 2005-2008+0.05% South 2000-2005-0.90% 2005-2008+0.18% Central-West 2000-2005-1.00% 2005-2008+1.05% Brazil 2000-2005-0.94% 2005-2008+1.08% GDP Brazil 2000-2005+3.05% 2005-2008+4.53%

14. 14 Consume Impulse North and Northeast Regions Economic growth generates employment growth Supplementary income through governmental mechanisms –Example/For instance: Family Grant Program

15. 15 Consume Impulse Government Role in the Problem Resolution Tax reduction for home appliance products

16. 16 Consume Impulse Liquigás Role in the Problem Resolution P-08 P-05

17. 17 Sector Future Challenges To develop mechanisms in order to grant subsidies to those who cannot afford the use of LPG. To ensure that subsidies are properly spent on LPG Microloans for low-income people

18. 18 Safety Benefits Public Health Cost Reduction End of Indoor Pollution

19. Paolo Ditta - Liquigás Outubro 2009 Liquigás is a Company of Petrobras’ System