Petrobras announces new diesel price cut in Brazil

Brazilian state-owned oil company Petrobras, the largest in Latin America, announced today a new diesel price cut, continuing the government’s policy of reducing fuel prices, thanks to which inflation fell by 0.68% in July.

Petrobras said that a liter of diesel will be sold to distributors at a price of 5.41 reais (US$$1.1) starting this Friday, a decrease of 4.07%.

This is the second decline in the price of diesel since President Jair Bolsonaro chose Caio Paes de Andrade as the new head of Petrobras.

Paes de Andrade took over from José Mauro Coelho, who had ordered a 14.2% increase in the price of diesel and a 5.2% increase in the price of gasoline in mid-June.

Together with the new leadership of state oil company Petrobras, Bolsonaro pushed through Congress a law that lowers the goods and services tax levied on fuel.

As a result of these measures, which made diesel, gas and gasoline cheaper, there was deflation of 0.68% in July, the lowest rate in that month since 1980, according to the Brazilian Institute of Geography and Statistics on Tuesday.

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