Petrobras Raises Gasoline Prices by 3.5 Percent and Diesel by 4.2 Percent

RIO DE JANEIRO, BRAZIL – The liter of gasoline has been readjusted by 3.5 percent and diesel by 4.2 percent. However, for the final consumer, tax and labor charges and profit margins at gas stations will be added to these figures.

Last Monday, September 16th, Petrobras released a note on the bombing of refineries in Saudi Arabia, responsible for the production of five percent of the world’s oil, which prompted an immediate rise in fuel prices around the world.

The state-owned company reported at the time that it would continue monitoring oil prices and would not make an immediate adjustment. After clearance from Economy Minister Guedes, however, Petrobras decided to adjust prices immediately

The most recent readjustment in gasoline in Brazil had been on September 5th and that of diesel on September 13th. On its website, Petrobras explains how the system works and the decisions to set the prices of the fuels it sells.

“Our pricing policy for gasoline and diesel sold to distributors is based on the price of import parity, formed by these products’ international rates plus the costs that importers would have, such as transportation and port duties, for instance.”

“Parity is required because the Brazilian fuel market is open to free competition, providing distributors with the alternative of importing the products,” explains the state-owned company in a note.

According to the company, the gasoline and diesel sold to distributors are different from the products at the gas station.

These are type A fuels: gasoline before its mixture with ethanol and diesel without adding biodiesel. “The products sold to final consumers at the stations are made from type A mixed with biofuels.”

Source: Agência Brasil