Methodology is designed to update the reference price for the different regions covered by Decree nº 9.403

The National Agency for Petroleum, Natural Gas and Biofuels (ANP) is using S&P Global Platts' diesel benchmark fuel price assessments and Renewable Volume Obligation (RVO) for the Diesel Subsidy Program for diesel sales in the country . The ANP published a formula in June 2018 based on Platts US Gulf Coast (USGC) Ultra Low Sulfur Diesel (ULSD) and RVO ratings to support Brazilian President Michel Temer's Decree 9.403/2018 detailing subsidies for diesel sales in Brazil.

The ANP formula will be calculated daily and used as a reference price to determine subsidy payments to all market participants who sell diesel to fuel distributors, including importers, provided they meet certain specific requirements.

The methodology is designed to update the reference price for the different regions covered by Decree No. 9.403/2018. The reference prices were defined in the Decree and the methodology aims to update these numbers daily.

Vera Blei, Global Director of Oil Markets at S&P Global Platts said: “The ANP's decision to use S&P Global Platts' benchmark ratings in the Diesel Subsidy Program shows the confidence that Brazil's energy regulator have in our price reports.” our pricing processes allow Platts pricing benchmarks to be used and respected by the world's most important energy markets. ”

Brazil is among the main oil and gas producing and consuming countries in the world to use S&P Global Platts as a reference in its national oil sector.

The specific S&P Global Platts price assessments being used in the ANP formula are ULSD USGC Prompt Pipeline and Renewable Volume Obligation 2018. For more information on these prices, other S&P Global Platts Oil and Gas Price Assessments and pricing methodology, visit http://www.spglobal.com/platts.