Brazil: Petrobras to readjust prices of gasoline by 5.18% and diesel by 14.26%

RIO DE JANEIRO, BRAZIL – On Friday, June 17, Petrobras announced a readjustment in diesel and gasoline prices.

The price of gasoline will go from R$3.86 (US$0.75) to R$4.06 per liter. Diesel will go from R$4.91 to R$5.61 per liter. LPG (liquefied petroleum gas) prices will not change.

The percentage increase for gasoline was 5.18%. Diesel was 14.26%. The new values go into effect on Saturday, June 18, 2022, for sales to distributors, according to the state-owned company.

The company states that since the gasoline sold at service stations must have a mixture of 73% gasoline A and 27% anhydrous ethanol, Petrobras’ part in the final price goes from R$2.81, on average, to R$2.96 per liter.

Thus, according to Petrobras, the new price for gasoline represents an increase of R$0.15 per liter.

For diesel, there is a mandatory blend of 90% diesel A and 10% biodiesel. This way, Petrobras’ part in the consumer price will go from R$4.42, on average, to R$5.05 per liter. The variation per liter is R$0.63.

The price at the pumps also includes, in addition to Petrobras’ portion, distribution, retail costs, and federal and state taxes.

Petrobras states that the price of gasoline has gone 99 days without readjustments. The diesel, 39 days. According to the state company, “the company has sought to balance its prices with the global market, but without the immediate transfer to domestic prices.

According to the state company, the current change is necessary because “the global energy market is currently in a challenging situation. Petrobras cites the recovery of the world economy from the second half of 2021 and the war in Ukraine, which puts pressure on the price of commodities such as oil.

“With this movement, Petrobras reiterates its commitment to the practice of competitive prices and in balance with the market while avoiding the immediate transfer to domestic prices of the volatility of international prices and the exchange rate, i.e., it avoids the transfer of temporary variations that can be reversed in the short term,” says the company’s statement.

The readjustment is the target of criticism from President Jair Bolsonaro (Liberal Party – PL) and his ministers. The president, the ministers Ciro Nogueira (Civil House), Fabio Faria (Communications), and Luiz Eduardo Ramos (General Secretary), used their pages on social media to adopt a harsh tone against the oil company.

Members of Congress and Senators from the center are threatening to start a “legislative war” against Petrobras after the announcement. The congressmen are demanding the immediate resignation of the CEO of the state-owned company, José Mauro Ferreira Coelho, threatening to break the monopoly of the state-owned company quickly.

With information from Poder360