Brazil's state-run oil company Petrobras Thursday announced it would reduce the sale price of fuel to distributors from R$ 3.53 (US$ 0.67) to R$3.28 (US$ 0.63) per liter effective Friday.
Petrobras argued that considering the mandatory mixture of 73% gasoline A and 27% anhydrous ethanol for the composition of gasoline at pumps, the new retail price for Brazilian drivers will go from R$ 2.57 (US$ 0.49) on average to R$ 2.39 (US$ 0.46) for each liter.
The cutdown follows the evolution of reference prices and is consistent with the pricing practice of Petrobras, which seeks to balance its values with the market, but without the transfer to domestic prices of the volatility of international quotations and the exchange rate, Petrobras was quoted by Agencia Brasil as explaining.
Petrobras also informed that it publishes information on its website regarding the formation and composition of fuel prices to the consumer, to contribute to the transparency of values and a better understanding, Agencia Brasil also reported.
Meanwhile, the price of Brent crude on London ICE fell by more than 2.7% to US$ 93 per barrel for the first time since August 22, while the cost of futures for WTI crude oil also dropped 2.37% to US$ 87.43 per barrel.
Oil prices recorded their biggest monthly loss of the year last month. Major producers might cut down output after the upcoming Organization of Petroleum Exporting Countries and its allies (OPEC+) on Sept. 5. At the last group meeting, on Aug. 3, a modest 100,000 barrel-per-day production increase for September was agreed upon.