Petrobras reduces diesel price by R$0.35 for distributors

Petrobras announced this Sunday a 9.59% reduction in the liter of diesel A for distributors, which will bring a liter of fuel to R$3.30 compared to the current R$3.65 as of Monday (1).

In a note, the state-owned company states that the reduction is due to the diesel subsidy announced by the federal government through MP (Provisional Measure) No. 1,358, of May 13.

On Saturday, the government of President Luiz Inácio Lula da Silva extended measures to try to contain the rise in fuel prices amid the continuing war between the United States and Israel against Iran.

Among the measures announced on Saturday was a subsidy of R$1.12 for road diesel to replace two other subsidies that would expire this Sunday.

In the note in which it announced the reduction for distributors, Petrobras said it is evaluating the terms of the new subsidy.

"Any decision by the company on this topic will be disclosed to the national market in a timely manner", he stated in the note.

Shortly after the start of the war, which began on February 28, in mid-March, Petrobras raised the price of diesel A in its refineries by 11.6%, or R$0.38 per liter, to an average of R$3.65 per liter, in a move that mitigated the gap in the value of the state-owned company in relation to the international market, after the spike in oil prices due to the conflict.

The war led to the closure of the Strait of Hormuz, through which 20% of the global flow of oil passed before the conflict, generating a rise in international prices of the commodity.

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Source: CNN