Brazil: Petrobras reduces gasoline prices by US$0.04 in refineries

On Tuesday, July 19, Petrobras announced a reduction of R$0.20 (US$0.04) per liter in the price of gasoline, which will be sold at R$3.86 (US$0.71) to distributors.

The readjustment will be applied in refineries on Wednesday, July 20.

The state-run company estimates that its share of the final consumer price will drop 5%, from R$2.96 to R$2.81 per liter, on average. The calculation considers the mandatory 27% anhydrous ethanol content in regular gasoline.

According to Petrobras, the reduction “follows the evolution of international reference prices. With the drop in the price of a barrel of oil, gasoline imports have also dropped.

According to Abicom (Brazilian Association of Fuel Importers), on Tuesday, July 19, gasoline was 8% more expensive in the domestic market than import prices. The difference was R$0.30 per liter.

It is the first price reduction Petrobras has made in refining in the year. From January 1 to June 17, the last readjustment, gasoline prices increased by 31.4% in the refineries and diesel by 68%.

At the pump, until the week of June 19-25, the average increase in the year was 11.6% and 41.9% for gasoline and diesel S10, in that order. These values do not consider the state tax cuts.

This Tuesday’s readjustment gives continuity to the drop in gasoline prices noticed at service stations since the implementation of the ICMS (Value-Added Tax on Sales and Services) ceiling. Prices have already dropped an average of 17.9% at the pump.

On Tuesday, July 19, President Jair Bolsonaro stated, “Brazil will soon have one of the cheapest gasoline in the world”.

With information from Poder360

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