Brazil: Petrobras announces an 8.1% reduction in the price of natural gas

Petrobras announced on Monday (17) the average reduction of 8.1% in natural gas’s price (reais/m³) for distributors as of May 1.

According to the oil company, oil dropped about 8.7% in the reference quarter, and the exchange rate appreciated by about 1.1%.

In a statement, the company said that the contracts with the distributors provide quarterly gas price updates and link the adjustments to the oscillations of Brent oil and the exchange rate.

The state-run company also said that the natural gas price to the final consumer would depend on the distributors’ profit margin and federal and state taxes.

And in the case of piped gas distributors, consumer prices are set by state regulatory agencies.

However, the reduction is not valid for bottled gas, which adopts LPG as the reference value.

With information from Gazeta do Povo