Brazil - 04

Brazil: New Price Policy: Petrobras Signals Political Independence to Market

On 14 October Petrobras announced it will lower the prices of gasoline and diesel at its refineries by 3.2% and 2.7%, respectively, in a decision welcomed by local distributors. It is the first such price cut since 2009. The company has also stated that from now on it will implement a new methodology to calculate gas and diesel prices at its refineries, taking into account the international prices of these fuels. According to its press release, “the new policy will take into account two factors: parity with the international market price – … including costs such as shipping fees, internal transportation costs and port charges – as well as a margin to account for endogenous risks, such as exchange rate volatility.”

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