Ipiranga, a fuel distribution network with nearly 90 years of history in Brazil, moves impressive numbers: 120 billion reais in annual revenue, 24 billion liters sold per year, 6,000 stations, and 1.5 million daily refuels at gas stations. But for Leonardo Linden, CEO of Ipiranga, the company’s biggest challenge goes beyond innovating towards its centennial and the energy transition—the biggest obstacle to the business is unfair competition.

“Our biggest challenge is the irregular market. We estimate that the country has lost about R$ 30 billion due to tax evasion and illegal practices,” says Linden in an exclusive interview with EXAME on the podcast "De frente com CEO."

Among the recurring investments, the CEO emphasizes that the security sector plays a central role in Ipiranga’s strategy. The company allocates millions every year to technologies applied in trucks and distribution bases, focusing on reducing operational risks.

"Ipiranga invests about R$ 100 million per year in security and has to compete with those who have no concern about this," says the president of Ipiranga.

Brazil, according to the executive, has 160 distributors, of which around 60 operate outside the business rules, according to data from the Combustível Legal —a business and multisectoral institute that fights illegal trade in the country.

"These operators are considered illegal either due to tax evasion, product alteration, illegal importation, or failure to comply with industry rules, such as not mixing biodiesel," says Linden.

The executive notes that he sees efforts from regulatory bodies and some political leaders to address the situation, but it remains a significant national challenge.

"In this irregular process, everyone loses: the biofuel's industry, the consumer, and the states due to tax evasion," he says.

The challenge of the illegal fuel market was even one of the main news stories of the past week. On August 28, the Federal Revenue Service carried out a large operation against organized crime in the fuel sector in São Paulo. However, Linden’s interview with EXAME’s podcast took place before this investigation.

A company beyond gas stations

Despite being primarily known for its 6,000 stations spread across Brazil, Ipiranga has a much broader operation, says the CEO. The company serves around 7,000 business clients, ranging from power plants and railroads to factories, transport companies, mines, hospitals, and shopping malls. "Where there’s an engine, there’s Ipiranga fuel," says the president of Ipiranga.

Logistics infrastructure is another key pillar for the business. Every day, about 3,000 company trucks travel across the country, performing 10,000 loading and unloading operations at its 90 distribution bases.

In retail, Ipiranga has also established itself as a leader in other segments. It operates 1,500 convenience stores, 800 of which have bakeries, making it the largest bakery franchise network in Brazil. In addition, the company maintains 1,100 JetOil units, dedicated to quick services like oil changes and light maintenance.

"Few people know, but Ipiranga is the largest bakery franchise in Brazil. In our convenience stores, customers can find everything: from coffee to self-service," says Linden.

Considering these different business clients, the CEO states that some segments stand out in generating revenue.

"We are very strong in the agribusiness sector, especially in power plants," says the CEO. "Public transportation and freight transport are also areas where we have a strong presence and that drive a lot of our demand."

Expansion and investments

Grupo Ultra, Ipiranga’s controlling group, has planned a total investment of R$ 2.5 billion for 2025. Of this total, Ipiranga will receive R$ 1.4 billion in investments.

“The focus of this investment is on technological modernization, expanding distribution bases to growing regions such as the Midwest and North, in addition to opening about 300 new gas stations,” says the president, who reinforces that the annual amount of R$ 100 million in operational security is also included.