Brazil: Petrobras approves new commercial pricing strategy for gasoline and diesel

By Felipe Laurence

Petrobras announced Tuesday that its board of directors had approved a new commercial strategy to set prices for gasoline and diesel sold by its refineries, replacing the import parity policy (PPI).

The new commercial strategy uses the customer’s alternative cost as the value to be prioritized in pricing, i.e., the main supply alternatives, whether suppliers of the same or substitute products.

The marginal value for Petrobras will also be considered, based on the opportunity cost given the several alternatives for the company, among them production, import, and export of the products or oils used in the refining process.

“The commercial strategy is based on competitive prices per sales hub, in balance with the domestic and international markets, taking into account the best alternative accessible to customers,” Petrobras said.

The readjustments will continue to be made without a defined periodicity, avoiding the transfer to domestic prices of the volatility of the economic situation, and the decisions will remain subordinated to the Executive Group of Market and Price.

Petrobras says the new commercial strategy allows it to compete more efficiently, considering its participation in the market, to optimize its refining assets and profitability sustainably.

The company reiterated its commitment to long-term financial sustainability, preserving its performance in balance with the market and its commitment to value creation.

It stated that competitive pricing guarantees investments foreseen in its strategic planning.

With information from Valor

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