Petrobras Plans to Raise Diesel Refinery Price by About 1 Real per Liter

en.Wedoany.com Reported - On September 10, two people familiar with the matter said that Petrobras is studying a plan to raise its refinery diesel sales price by about 1 real per liter, but the company has not yet implemented this price adjustment before the federal government completes the publication of supporting rules for its new round of diesel subsidy measures. The proposed price adjustment mainly involves diesel sold to fuel distributors, and the final adjustment plan and implementation timing still depend on the specific implementation of the government subsidy measures.

Information released by Petrobras on the same day shows that, regarding the newly announced government economic subsidy for diesel commercialization, the company is waiting for the release of relevant legal documents before evaluating and implementing the subsidy measures. The company did not confirm in the announcement that diesel would be raised by 1 real per liter, nor did it publish a new refinery diesel sales price.

The Brazilian federal government announced additional diesel subsidies on September 9. Measures published by the Ministry of Finance include a new round of economic subsidies for producers and importers of road transport diesel, with an initial amount of 1 real per liter; this measure will be linked with the previously implemented diesel subsidy of 1.12 reais per liter. The government will also separately publish specific operational rules.

Previously, Petrobras had already participated in the government's diesel subsidy arrangements. On June 1, under the relevant subsidy mechanism, the company discounted the sales price of road diesel A by 0.3515 reais per liter, reducing the average selling price to distributors from 3.65 reais per liter to 3.30 reais per liter; starting July 1, the company lowered the base sales price of diesel A by 0.3515 reais per liter while canceling the equivalent temporary subsidy discount, so the average price actually paid by distributors remained at 3.30 reais per liter.

As of the statistical period from August 30 to September 5, the national average terminal price of S-10 diesel in Brazil was 6.88 reais per liter, of which Petrobras' corresponding price portion was about 2.83 reais per liter, accounting for 41.1% of the average terminal price; distribution and retail accounted for about 1.78 reais per liter, biodiesel about 0.78 reais per liter, state taxes about 1.17 reais per liter, and federal taxes about 0.32 reais per liter.

About one quarter of Brazil's diesel demand relies on imports. As international crude oil and diesel prices rise, the price gap between import costs and domestic selling prices has widened. Two people familiar with the matter said that a refinery price adjustment of about 1 real per liter could substantially narrow the current price gap; if the government's additional subsidy of 1 real per liter is implemented as planned, it could offset the corresponding cost changes at the sales stage of producers and importers.