Rio de Janeiro – Brazil’s state-run oil company Petrobras announced this Friday (14) that the price of gasoline will be slashed by 3.2% as of midnight. Diesel prices will be cut by 2.7%. The move comes in the wake of the new pricing policy approved by the company on Thursday (13).
The price cut applies to wholesale fuel sold to gas stations. The impact of that on prices paid by end buyers will be up to each gas station, but in case the full reduction is passed on to consumers, then gas will be 1.4% cheaper and the price of diesel will drop by 1.8%.
The new pricing policy incorporates international parity price (IPP), operational hazard margins, and market share levels. The company has determined that prices will never fall short of the international parity threshold. Also factored in are shipping and domestic transportation costs and ports’ charges.
Prices will be revised at least once a month, on which occasions they can be reduced, increased or kept the same.
*Translated by Gabriel Pomerancblum
