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Brazil lowers fuel prices: diesel down 10.4% and gasoline, 3.1% at the refinery

Thursday, November 10th 2016 - 11:35 UTC
Full article 9 comments

In line with the pricing policy announced by Petrobras on October 14, 2016, the company’s markets and pricing executive committee has decided to reduce the prices of diesel and gasoline sold at its refineries by 10.4% and 3.1%, respectively.The combination of a 12.1% fall in the international prices of oil and oil products between October 14 and now, and the reduction in the company’s domestic market share has impacted the usage level of Petrobras’ assets, especially its refineries, its inventory levels and also its flows of imports and exports Read full article

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  • Bisley

    Government should not be manipulating the price of fuel, or anything else -- nor should it own, or control oil companies, or any other companies. Prices need to be set by supply and demand in a free market to ensure that they have some relation to the costs of production, and match production to demand within a profitable range. Government interference sends signals to both consumers and producers that prevent the system from moving toward a proper balance, and creates chaos.

    Nov 10th, 2016 - 04:44 pm - Link - Report abuse +1
  • Jack Bauer

    That is exactly why PB, under the Temer government, has adopted a fuel policy prevalent in most civilized countries. No longer will the prices be subsidized by PB in order to boost the Government's popularity (as done by Lula and Dilma between 2010 and 2014), nor will they be set artificially. Prices will be adjusted whenever necessary, based on the international oil prices.
    The reason that PB is currently majority-owned by the Federal government, is only because Lula, in 2007, decided to take control of it again by an accounting gimmick whereby they acquired sufficient controlling shares without forking out one penny - a disgusting trade-off, only possible under a corrupt government and a PT dominated Congress at the time. But Temer has already mentioned that the possibility of privatization is not off the table...

    Nov 10th, 2016 - 06:11 pm - Link - Report abuse +1
  • ChrisR

    Uruguay, on the other hand, have NOT dropped the cost of fuels despite the reductions because of the U$D 1,000M 'loss' aka theft by the directors of the various companies which comprise the government owned monopoly ANCAP.

    And our illustrious Veep, Sendic (he of the Cuban 'degree' in Human Genetics that he obtained in 9 months, since utterly denied by Cuba and ridiculed for the amateur 'Certificate' ink jet printed on an A4 sheet of paper) managed to lose U$D 300M personally when his was the president. Mujica defended him and claimed it was not corruption!

    Sendic's father was the top murdering Tupamaro and joint in charge with another murderer: Mujica.

    Nov 10th, 2016 - 06:59 pm - Link - Report abuse -1
  • :o))

    For a huge country like Brazil where most of the goods are mainly transported by the roads/highways; the lowering of the fuel-prices - NATURALLY [supply-demand] or ARTIFICIALLY [political-reasons] - can help lower the inflation and boost the economy; provided the benefits of the lowering of prices trickle down to the masses. Secondly; if the state-run industries are unable to make profits; they better be privatized.

    Nov 13th, 2016 - 01:43 pm - Link - Report abuse 0
  • Jack Bauer

    @ :o))
    “the lowering of the fuel-prices - NATURALLY [supply-demand] or ARTIFICIALLY [political-reasons] - can help lower the inflation and boost the economy; ”

    Allow me to disagree - IF fuel prices are lowered ARTIFICIALLY - which implies they will be subsidized - this means that someone, or something , will have to lose so that the population can win - and this will last only for the short term ; eventually, the bill will have to be paid....by whom ? by PB and its shareholders.....just look at the result of Dilma's wonderful (read “disastrous” ) policy to ARTIFICIALLY maintain the fuel prices 'contained' (and not at all 'low') for exclusively populist purposes.... the economy cannot be built on shaky foundations, and populist policies, like lies, have short lives. The saying “there is no such thing as a free lunch”, rings true every time.
    As to getting rid of State-run companies, fully agree...EVEN if it does turn a profit (unlikely, despite being a govt monopoly) , it would fare much better in the hands of the private sector. Look at PB during the period between FHC and Lula (semi-privatized), and during/ after Lula/Dilma (nationalized...and broke) ...it speaks for itself.

    Nov 14th, 2016 - 06:39 pm - Link - Report abuse 0
  • :o))

    Hi, Jack! You are right. Hence the prices need to be driven by the “natural” Demand-Supply situation.

    Due to the global-glut and an excessive worldwide supply, the demand is not expected to be spectacular for a few more years. Also as mentioned: IF the state-run industries are unable to make profits; they better be privatized/sold.

    Finally; as also mentioned elsewhere:

    Judging from the technological progress and also due to the economic & environmental reasons; in the next 10 or so years - in the nearest future, the demand for fossil-fuels will be much - MUCH - lesser than what it is today.

    The use of alternative, cheaper, green, renewable & sustainable energies/fuels will be more common - even in the poor underdeveloped countries. The battery powered and fuel-efficient vehicles (driverless) [not JUST cars] is no longer a fiction and is just ONE example.

    Nov 15th, 2016 - 11:07 am - Link - Report abuse 0
  • Jack Bauer

    @:o))
    The oil glut, plus the depressed world economy has sure taken its toll on the oil companies. With all the new technolgies being developed, have my doubts as to whether oil will ever recover the importance it has had in the past .
    PB's only chance of survival is to downsize (sell all non-essential assets, in order to also offset part of the monstrous debt) and become extremely efficient, or it'll go down the drain. Can only see that happening is it is privatized, to the extent that the govt has no more say in its administration.

    Nov 15th, 2016 - 05:17 pm - Link - Report abuse 0
  • :o))

    Considering the economic/political mess; Brazil is better off getting rid of PB - asap!

    Nov 15th, 2016 - 10:20 pm - Link - Report abuse 0
  • Jack Bauer

    @:o))
    Agree, and while we are at it, get rid of all the ridiculous nationalists that would try to hang on to it.

    Nov 16th, 2016 - 08:29 pm - Link - Report abuse 0

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