Energy

Brazil's Bolsonaro hints at fresh Petrobras fuel price cut after Brent drop

Reuters
02/08/2022 21:05
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Brazilian President Jair Bolsonaro said on Tuesday that a recent drop in Brent oil prices may lead state-run Petrobras (PETR4.SA) to cut refinery gate fuel prices once again, after the company announced two gasoline price reductions in July.

"Yesterday Brent fell below $100 per barrel, a signal that Petrobras can again cut fuel prices. Perhaps diesel (prices)," Bolsonaro said in an interview with radio station Guaiba.

On Monday, Brent crude futures reached a session low of $99.09 a barrel as weak manufacturing data in several countries weighed on the demand outlook. read more

Petroleo Brasileiro SA, as Petrobras is formally known, last week announced a 4% cut on gasoline prices, adding to a 5% reduction earlier in the month and taking prices to their lowest level since March.

Petrobras, which pegs its local fuel prices to international rates including global oil prices and foreign exchange, said at the time the cut came as international benchmark prices had "stabilized at a lower level for gasoline".

Diesel prices at its refineries, however, were kept unchanged at a level set in mid-June. read more

Bolsonaro and federal lawmakers have been putting intense pressure on the company to bring down prices amid high inflation and ahead of a general election in October.

"That's no crystal ball," Bolsonaro said about expecting a fresh cut on fuel prices. "If the dollar falls (against the Brazilian real), they will also fall".

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