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Distributors, Importers And Other Fuel Producers In Brazil Had Already Promoted Price Adjustments Before Petrobras To Ensure The Brazilian Market Continued To Be Supplied Without Supply Risks
After another increase in gasoline, diesel, and LPG prices, Petrobras speaks out and informs that, in recent months, the international oil market has been facing high volatility, with COVID-19, its impacts and uncertainties as a backdrop. More recently, geopolitical tensions in Europe added another component of volatility, culminating with the invasion of Ukraine by Russia on February 24.
According to Petrobras, at first, despite the spike in international prices, upon evaluating the market conditions and prices according to the established governance, it decided not to immediately pass on the volatility, monitoring oil prices daily. Only on March 11, after consistently high prices were observed, the company implemented adjustments to its sales prices to gasoline, diesel, and LPG distributors.
The prices applied at that moment, although significant, reflected only part of the increase in international oil prices, which were strongly impacted by limited supply against global energy demand.
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Increase In Fuel Prices Prevents Supply Risks
This move by the company was in line with other fuel suppliers in Brazil who, before Petrobras, had already made price adjustments, necessary for ensuring that the Brazilian market continued to be supplied without supply risks, by the different players responsible for servicing the various Brazilian regions: distributors, importers, and other producers, in addition to Petrobras.
Petrobras follows all governance protocols and seeks a balance with the market while avoiding passing the volatility of international quotations and exchange rates caused by conjunctural events onto internal prices.
This positioning allowed Petrobras’ refinery prices to remain stable for 152 days for LPG and 57 days for gasoline and diesel, even amidst this rising international price scenario.
In recent days, we observed a reduction in international derivative price levels, followed by a sharp increase yesterday. Petrobras is sensitive to the price impacts on society and maintains daily market monitoring during this challenging and highly volatile time, unable to anticipate decisions regarding price maintenance or adjustments.
We continue in a highly uncertain environment, with rising demand for fuels worldwide, at a time when the developments of the war between Russia and Ukraine impact supply, creating competition for product supply globally, which reinforces the importance of keeping prices in Brazil aligned with the global market to ensure normal supply and mitigate risks of fuel shortages.
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