MercoPress. South Atlantic News Agency

Petrobras lowers price of cooking gas

The measure was feasible thanks to an appreciation of the real against the US dollar

Brazil's state-run Petrobras Friday announced a reduction in the price of Liquefied Petroleum Gas (LPG) sold to distributors and which is used for cooking and heating in households.

According to the oil company, the average LPG sales price will go from R$ 4.48 to R$ 4.23 per kg (R$ 0.25 per kilo), which is tantamount to R$ 54.94 (US$ 11.96) per 13kg (the size of cylinders sold to consumers). With this, the price will have an average reduction of R$ 3.27 per 13 kg, or 5.58%.

The measure was feasible thanks to an appreciation of the real against the US dollar.

“Following the evolution of international prices and the exchange rate, which stabilized at a lower level for LPG, and consistent with its pricing policy, Petrobras will reduce its sales prices to distributors. As of April 9, the average LPG sale price from Petrobras to the distributors will go from R$4.48 to R$4.23 per kg, equivalent to R$54.94 per 13 kg, reflecting an average reduction of R$3.27 per 13 kg,” Petrobras said in a statement which also mentioned the company's pledge to the practice of competitive prices and in balance with the market while avoiding the immediate transfer to domestic prices, of external volatility and exchange rate caused by circumstantial events.

The last gas price readjustment had been made on March 11. On that occasion, the average LPG sale price to the distributors was readjusted by 16.1%, going from R$ 3.86 to R$ 4.48 per kg, equivalent to R$ 58.21 per 13kg.

The average price of a 13-kg cylinder currently is R$ 113.63, according to a survey conducted by the National Petroleum, Natural Gas, and Biofuels Agency (ANP) between March 27 and April 2.

In March, the price of cooking gas has risen 29.56% YoY, it was also reported.