Petrobras reduces diesel by R$0.35, and price to distributors is maintained after end of subsidy; understand

Petrobras headquarters building, in the center of Rio
Marcos Serra Lima/g1
Petrobras announced this Tuesday (30) that it will reduce the price of diesel sold to distributors by R$0.35 per liter. The measure comes into force this Wednesday (1st).
The announcement was made a few hours after the government confirmed the end of the fuel subsidy, also from this Wednesday, at the same value of R$ 0.35 per liter.
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In a statement, the state-owned company stated that it will no longer apply a temporary discount granted during the validity of the subsidy - a mechanism through which the government reimbursed Petrobras for reductions in the price of diesel to distributors. (read more below)
Until then, Petrobras granted a discount of R$0.35 per liter and was reimbursed by the government within the scope of the subsidy. With the end of the measure, the discount ceases to exist and is compensated by the equivalent reduction in the base price of diesel.
In practice, the two effects are offset, and the amount charged to distributors remains unchanged, at R$3.30 per liter, with no impact on the final consumer.
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"The sales prices of diesel oil A, for road use, from Petrobras to distributors will remain unchanged, with an average value of R$ 3.30 per liter", said Petrobras in a note.
The state-owned company reported having received around R$ 2 billion from the government related to the diesel subsidy, intended to offset the discounts granted on fuel.
End of the subsidy
The end of the subsidy was announced this Tuesday (30) by the Minister of Finance, Dario Durigan.
The measure had been adopted at the end of May to reduce the impact of rising fuel prices caused by the war in the Middle East.
The initiative was part of a package of government measures. Between March and April, the Executive provided a discount of R$ 1.20 per liter of fuel, linked to the relief from federal and state taxes.
On May 31, the government created a subsidy of R$ 0.35 per liter to replace the relief from federal taxes that expired at the beginning of June. This is the measure that ends as of this Wednesday.
"We were attentive and ready to put the measures in place so as not to be a partner in the war and mitigate prices. We will also be attentive and be ready to withdraw and reverse the measures", stated Durigan.
The decision comes at a time of falling oil prices. The Brent type closed at US$ 72.92 a barrel this Tuesday, below the around US$ 120 registered at the end of March, when the escalation of the conflict in Iran raised tensions in the Middle East.
* With information from the news agency Reuters

Source: G1