Latest News

Brazil's Petrobras lowers the price of diesel for distributors with cashback system

In a Sunday statement, Brazil's state oil company,?Petrobras?, announced that it would lower the diesel price to distributors starting June 1 by 0.3515 Reais per liter. This follows an announcement from the Brazilian government regarding a cashback program for producers and importers.

Petrobras said that the average price it charges distributors for a liter of gasoline will drop to $3.30 ($0.6552) from $3.65 previously.

The Brazilian 'government' announced on Saturday a new cashback scheme for diesel producers and importers of 0.35 Reais per liter. This system is also scheduled to begin in June?1. It will compensate for the ending of a tax exemption program.

Petrobras said that the lowering of diesel prices would "neutralize" any effect the higher taxes will have on consumers.

The government has also established a diesel subsidy in Brazil and renewed tax exemptions on cooking gas, jet fuel, and jet fuel. This is to keep prices down in the year when President Luiz Inacio Lula Da Silva will be seeking reelection.

Petrobras announced that it is analyzing the announcement on Saturday of a new diesel subsidy of 1,12 reais/liter.

The firm said that "any decision made by the 'company' on this issue?will be immediately disclosed to the domestic market."

(source: Reuters)