MercoPress. South Atlantic News Agency

Cheaper gasoline and diesel fuel prices in Brazil

Petrobras has implemented gasoline and diesel price reductions in line with the international situation

Brazil's oil and gas giant Petrobras started implementing a reduction in fuel prices at its refineries gates, effective this week. Gasoline price with being reduced 6,1% from R$ 3,28 to R$ 3,08, while A diesel on average will be dropping from R$ 4,89 to R$ 4,49, equivalent to an 8,2% rebate.

The previous reduction of gasoline prices in Brazil dates from September second, Allegedly the EU decision to impose a US$ 60 per barrel cap on Russian oil, as well as a limited supply since OPEP+Russia and allies have decided to maintain their production quotas unchanged, have changed the rules of international markets, according to comments from Petrobras headquarters.

As a consequence of the latest administrative decision, taking into account that gasoline in Brazil has a mandatory mix of 73% pure gasoline and 27% of ethanol, Petrobras revenue from the consumer price at the pump for every liter will be, R$ 2,25. While for diesel, with a mandatory mix of 90% diesel and 10% bio-diesel, means the oil giant will be receiving R$ 4,04 for every liter at the pump.

In a brief release Petrobras, explained that “these reductions are in line with the evolution of reference prices and are coherent with Petrobras price policy, which is geared to balance its prices with those of markets, without passing on to domestic prices the current volatility of world quotations and the exchange rate”.