Petrobras Adjusts Prices, Diesel Rises Nearly 15% and Gasoline 5% After Months Without Increases

14.6% Increase for Diesel and 5.2% for Gasoline Announced by Petrobras

After 99 days frozen, the price of gasoline will be adjusted this Saturday, 18, by Petrobras, now costing R$ 4.06 per liter at the state-owned refineries, an increase of 5.2% in price. The diesel, which has been without any price adjustment for 39 days, will now cost R$ 5.61 per liter, having a 14.2% increase, according to an announcement made by Petrobras this Friday, 17.

Such adjustments demonstrate the surge in petroleum derivative prices globally, following the rise in oil prices, resulting in higher fuel demand and refinery closures due to the war between Russia and Ukraine.

According to Abicom (Brazilian Association of Fuel Importers), to equalize Brazil’s fuel prices with those practiced in the Gulf of Mexico, from where most shipments originate, the price increase should be R$ 0.57 for gasoline and R$ 1.37 for diesel, given the differences of 13% and 21%, respectively.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

The increase in diesel and gasoline prices adjusted by Petrobras follows the rising oil prices in the global market. This Friday, 17, oil contracts for August were trading at US$ 119.5 per barrel in the morning, Brasília time.

The exchange rate also saw a rise and has already surpassed R$ 5, with investor caution driving up the U.S. dollar.

Increase in Gasoline and Diesel Prices Causes Tension Between the Government and Petrobras

The increase in gasoline and diesel prices has generated some moments of tension between Petrobras and the government. The President of the Republic, Jair Bolsonaro, criticizes Petrobras for its high profits and distribution of billion-dollar dividends, including dividends for the Union, and asks Petrobras to refrain from any further fuel price adjustments.

According to Petrobras’ statutes, an occasional loss generated by its controlling shareholder (the Union) must be compensated, meaning that to prevent any further adjustments in gasoline and diesel prices relative to international markets, the Union would have to reimburse the difference to Petrobras.

Ciro and Lira Criticized Possible New Increase in Gasoline and Diesel Prices

Ciro Nogueira, Chief of Staff, and the President of the Chamber, Arthur Lira, attacked Petrobras this Thursday, 16, before the state-owned company announced an increase in the prices of gasoline and diesel.

Amid speculation that Petrobras could adjust fuel prices, Ciro wrote on Twitter that Petrobras does not belong to its directors but to Brazil, suggesting he condemned yet another fuel price adjustment.

Additionally, according to President Jair Bolsonaro’s speech, Ciro further stated that Petrobras cannot “continue with such insensitivity” and “ignore its social function.” “The government, Congress, and everyone responsible must put an end to this abuse of billion-dollar profits when the company cannot turn its back on Brazil and Brazilians,” he said.

Still on Thursday, 16, Márcio Weber, Chairman of the company’s Board of Directors, held an urgent meeting with state members to decide whether to increase diesel and gasoline prices.

Prior to the price adjustments announced by Petrobras this Friday, 17, the government had been trying to convince Petrobras’ resigning president, José Mauro Coelho, not to raise fuel prices so that the ICMS ceiling, validated this Wednesday, 15, in Congress with support from the Palace, would have some effect at the pumps.