Petrobras readjusts fuel prices: gasoline rises 5.18%; diesel price is 14.26% | Economy

Petrobras announced this Friday (17) new highs in the prices of gasoline and diesel sold to distributors, as of June 18. Diesel had not been readjusted since May 10 – 39 days ago. Already the last rise in the price of gasoline had been on March 11 – 99 days ago. LPG prices will not change.

With the readjustment, the average gasoline sales price of the Petrobras for distributors will go from R$ 3.86 to R$ 4.06 per liter (high of 5.18%). For diesel, average selling price of Petrobras for distributors will go from R$ 4.91 to R$ 5.61 per liter (high of 14.26%).

The discharge was the subject of discussion at an extraordinary meeting of the Petrobras Board of Directors the day before.

  • Valdo Cruz: Government analyzes measures to ‘force’ change of command of Petrobras as early as next week

During the meeting, according to Valdo Cruz’s blog, councilors linked to the government tried to convince the company to hold the increase. But the board reported the content of the conversations held with the government in recent days, when President Jair Bolsonaro’s team did not accept to grant a subsidy to the state-owned company and to private importers to bring the most expensive diesel abroad and sell it in Brazil with a lower value.

Understand the rise in fuel prices

Understand the rise in fuel prices

In the note announcing the adjustment, Petrobras says that the global energy market is currently in a “challenging situation”, due to the recovery of the world economy and the war in Ukraine.

The state-owned company also points out that “it is sensitive to the moment that Brazil and the world are facing and understands the effects that fuel prices have on the lives of citizens”, and that it has sought to balance its prices with the global market, without the immediate pass-through of the volatility of external prices and exchange rates.

“Nevertheless, when there is a structural change in the level of global prices, it is necessary for Petrobras to seek convergence with market prices”, says the note, which suggests that, otherwise, there could be a risk of internal shortages.

It is worth remembering that the final value of fuel prices at the pumps also depends on taxes and the profit margins of distributors and resellers.

According to the ANP, the average price of gasoline in the country was R$ 7,247 in the week ended on the 11th. Diesel, on the other hand, was R$ 6,886.

Congress this week approved the project that limits the rate of the Tax on the Circulation of Goods and Services (ICMS) on fuel, energy, natural gas, communications and public transport. The measure is one of the federal government’s attempts to reduce fuel prices in an election year.. To take effect, it now depends on presidential sanction.

  • ICMS ‘ceiling’ for fuels: understand what can change for the consumer

Concerned about rising fuel prices in an election year, President Jair Bolsonaro has pressured Petrobras not to pass on the rise in international oil prices to the pumps. Since 2016, the state-owned company has adopted a pricing policy for its refineries that is guided by fluctuations in the price of a barrel of oil on the international market and by the exchange rate.

Brent oil, the main international benchmark, has already accumulated a rise of more than 60% in the year, and ended Thursday (16) at US$ 120.95 a barrel.

  • Petrobras’ 2021 profit was the highest ever recorded by publicly traded companies in Brazil

Understand how Petrobras' pricing policy works

Understand how Petrobras’ pricing policy works

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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