Latest News

Petrobras reduces diesel prices first time in over a year

Petrobras reduces diesel prices first time in over a year

Petrobras, the state-run Brazilian oil company, announced on Monday that it would lower its refinery gate prices for diesel fuel for the first time since more than a calendar year. This is because local prices are currently higher than import parity.

In a press release, the company announced that it would reduce the price of diesel sold by distributors to 3.55 Reis ($0.6197 per liter) starting April 1. Gasoline prices will remain unchanged.

This is the first time the oil giant has changed the diesel price since February when they raised it by nearly 7%. It's also the first change since December 2023.

The good news is that the leftist president Luiz Inacio Lula has seen his approval ratings plummet in recent months due to high inflation.

Petrobras, under Lula's leadership, has implemented a new pricing policy that is designed to protect Brazilian fuel prices from the volatility of international markets, while maintaining a profitable sales model for the company.

Petrobras made the move in response to the strengthening of Brazil's currency against the U.S. Dollar this year. This occurred at a time when global oil prices were trading below the levels they were at the last price increase.

Petrobras diesel prices were above the import parity for most of this week and were 2% higher on Monday according to Abicom.

Magda Chabriard, CEO of Petrobras, said at an event in Rio de Janeiro, that the company will also lower the prices of jet fuel, but did not provide any further details.

(source: Reuters)