Brazil’s Petrobras lowers selling price of diesel for distributors

Brazilians can breathe a sigh of relief. While country after country descends into chaos because of skyrocketing fuel prices, fuel in Brazil is getting significantly cheaper.

After gasoline became so affordable in Brazil thanks to Bolsonaro’s intervention with the all-powerful oil company Petrobras that now, for the first time, even Paraguayans are coming to Brazil in droves to fill up, diesel is now also becoming cheaper as promised.

Starting tomorrow (5), the average selling price of diesel A from Petrobras to distributors will decrease from R$5.61 to R$5.41 per liter, a reduction of R$0.20 per liter.

According to the company, Petrobras’ share of the consumer price will decrease from an average of R$5.05 to R$4.87 for each liter sold at the pump, considering the mandatory blend of 90% diesel A and 10% biodiesel for the composition of diesel sold at gas stations.

“This reduction follows the evolution of reference prices, which have stabilized at lower levels for diesel, and is in line with Petrobras’ pricing practice, which aims to align its prices with the world market, but without transferring short-term fluctuations in international prices and the exchange rate to domestic prices,” the company said.

This is the first drop in the price of diesel since Caio Paes de Andrade, with Bolsonaro’s endorsement, was elected president of Petrobras at the end of last June.

In May Bolsonaro demanded the resignation of the then president of the oil company, Jose Mauro Coelho, who decreed a 14.2% increase in diesel and 5.2% in gasoline.

At the same time the government obtained the approval in Congress of a law that reduced the fuel tax, the ICMS, thanks to which inflation rates fell in the first fortnight of July. (ANSA).

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