MercoPress. South Atlantic News Agency

Petrobras increases price of fuel for distributors after 57 days

Petrobras will monitor the international situation and not pass on every global increase to the local market

Brazil's Petrobras has increased the price of refined gasoline and diesel for distributors as of March 11. The average price has gone up to R$3.86 (US$ 0.77) for regular fuel and R$4.51 (US$ 0.9) for diesel.

It has been 57 days since prices were adjusted. These are not the prices consumers have to pay at pumps.

“Considering the mandatory blend of 27% anhydrous ethanol and 73% gasoline A for the composition of the gasoline sold at petrol stations, Petrobras' portion in the price for the consumer will go from R$2.37, on average, to R$2.81 for each liter sold at the pump. A variation of R$ 0.44 per liter,” the company announced in a press release.

For diesel, Petrobras' average sale price to distributors will rise from R$3.61 to R$4.51 per liter. “Considering the mandatory mixture of 10% biodiesel and 90% diesel A for the composition of the diesel sold at service stations, Petrobras' portion of the price to the consumer will go from R$ 3.25, on average, to R$ 4.06 for each liter sold at the pump. A variation of R$ 0.81 per liter,” the note adds.

Regarding LPG [liquefied petroleum gas], according to the company, the last price adjustment has been effective since Oct. 9. The new price of LPG for distributors will rise from R$3.86 to R$4.48 (US$ 0.89) per kg, an average adjustment of R$0.62 per kg.

“This movement by Petrobras goes in the same direction of other fuel suppliers in Brazil that have already promoted adjustments in their sales prices,” the company pointed out.

Despite the skyrocketing prices of oil and its derivatives around the world in recent weeks, as a result of the war between Russia and Ukraine, Petrobras said it would monitor the situation daily before passing on every global increase to the local market.

“After prices were observed at consistently high levels, it became necessary for Petrobras to make adjustments to its sales prices to distributors so that the Brazilian market continues to be supplied, with no risk of shortages, by the different players responsible for serving the various Brazilian regions: distributors, importers, and other producers, in addition to Petrobras,” the statement said.