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Petrobras' average gasoline and diesel prices sold to distributors in Brazil are above import parity, opening up space for the oil company to reduce prices at its refineries.
This was due to the fall in oil prices in the international market in the last week, in the face of concerns about higher interest rates in the US.
Despite this, the values of commodity they rose about 1% this Monday, the 6th. Jean Paul Prates, the new president of Petrobras, defends the end of the import parity for the formation of the company's prices. The international market has been unstable, making room for a possible reduction in oil prices.
Peter Shinzato, oil analyst and derivatives of StoneX, commented that this change may happen soon. According to StoneX, Petrobras would have to cut diesel by 16,8% and gasoline by 11,6% to reach average parity. However, Shinzato and other experts point out that external factors, such as the European Union's embargo against Russian diesel, could change this scenario and raise prices worldwide.
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At first, Petrobras decides when and how readjust fuel prices according to the import parity, which takes into account global variables such as the price of oil and the value of the dollar. The decision is made by the company's CEO, along with two other directors: finance and commercialization.
In addition, other commercial variables are considered to define the ideal time to make price adjustments. The Executive Chairman of Brazilian Association of Fuel Importers (Abicom), Sérgio Araújo, stated that, although there are price lags, it is not the ideal time to make adjustments, as international prices tend to rise due to the European embargo on Russian diesel.
According to Abicom's estimates, Petrobras' diesel is 18% more expensive than imported diesel, while gasoline costs 10% above import parity. Since the president of Petrobras, Roberto Castello Branco, took office, fuel prices have not been readjusted.
However, the Brazilian Infrastructure Center (CBIE) estimates that diesel is 14,14% above par and gasoline 8,86%. Pricing decisions are made by former management executives based on import parity.
The president of Petrobras appointed a new commercialization director and four new executives to the company's boards. These names are being evaluated by Petrobras' integrity committees. However, there is still no nominee to occupy the financial directorate.
Source: REUTERS
