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Petrobras Brazil has cut gasoline prices for first time since 2023

Petrobras, the state-owned oil company of Brazil, has announced that it will lower gasoline prices for distributors starting Tuesday. This is the first time since October 2023 that the price of the fuel has been reduced.

Petrobras announced in a Monday statement that gasoline prices would drop by 5.6%, to an average of 2.85 reais ($0.5005)/litre. This represents a 0.17-reais reduction per litre.

According to ANP data, gasoline sales in Brazil increased 4.6% from April of last year, and reached 3.81 billion litres.

Gasoline sales in the first four months of the year totaled 14.74 billion litres. This is a 3.5% increase compared to 2024. Last year, sales declined compared to the previous year.

Petrobras, since 2023 has implemented a new price policy to prevent the transfer of international volatility to the domestic market.

Petrobras' last price adjustment occurred in July 2024 when it raised gasoline prices 7%.

Petrobras will reduce its prices, but it won't be immediately felt by consumers. This is because the price reduction will be dependent on factors like tax collection, ethanol blends, and margins for distribution and retail. $1 = 5.6939 Reais (Reporting and writing by Marta Nogueira, Editing by Aida Pelaez-Fernandez, Susan Fenton).

(source: Reuters)