Petrobras Reduces Diesel Prices and Cancels Temporary Discount

en.Wedoany.com Reported - Brazilian state-owned oil company Petrobras announced on Tuesday a reduction of R$0.3515 (approximately US$0.0682) per liter in the price of diesel sold to distributors, effective July 1. In a statement, the company said the price adjustment was based on changes in domestic and international oil and derivatives markets.

At the same time, Petrobras suspended a temporary diesel discount of the same amount previously offered. The two adjustments offset each other, keeping the average diesel price for distributors unchanged at R$3.30 per liter. The actual stability in diesel prices resulted from Petrobras' dual operation of price adjustment and discount cancellation.

Earlier in the day, the Brazilian government announced a reduction of R$0.35 per liter in fuel subsidies starting in July, which were previously implemented to mitigate the impact of rising global oil prices on the domestic market. Brazil's Finance Minister stated that as international oil prices decline, the government has begun to gradually withdraw temporary subsidy measures. Notably, diesel prices saw no net change in this government subsidy adjustment.

Petrobras' operation kept diesel prices stable for distributors, resulting from the combined effect of two opposing factors: price reduction and subsidy cancellation. The company noted in its announcement that the average selling price to distributors would therefore remain unchanged. The stability of diesel prices also reflects Petrobras' pricing strategy choices in response to policy changes.