Petrobras Will Reduce Natural Gas Prices, and Federal Government Seeks Expansion in Domestic Production Through Investments in Pre-Salt

Petrobras Announces 8.1% Reduction in Natural Gas Price

Petrobras announced on Monday (17) a new reduction in the price of natural gas for distributors, which will take effect from May 1. The 8.1% drop in the product’s price is related to the moving quarter of February, March, and April, during which the price of Brent crude oil, a reference in the international market, decreased by 8.7%.

Despite this, there was a slight currency depreciation of 1.1%. With this new adjustment, Petrobras has accumulated a 19% reduction in the price of gas in 2023.

Federal Government Studies Expansion of Pipelines and Natural Gas Production in the Country

The federal government is analyzing the possibility of using pre-salt resources to finance the expansion of pipelines and increase the supply of natural gas in the national territory. The president of Petrobras, Jean Paul Prates, commented on the price reduction during an event at the Federation of Industries of the State of São Paulo (Fiesp):

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“I want to take this opportunity to give some good news. Today, we are practicing prices in the order, on average, of US$ 10.5. By May 1, it is our commitment, I announce here, to lower this price to levels of US$ 9.75, US$ 12 at the maximum range.”

Impact of the Reduction on the Market and Comparison with Other Fuels

Since taking over as president of Petrobras in January, Jean Paul Prates has already promoted average reductions in natural gas prices of about 20%. By May 1, the price will be 20% lower than in January.

Valecard, a consulting firm that works with 25,000 commercial establishments across Brazil, reported that last week the average price of gasoline rose by 0.18%, reaching R$ 5.735; hydrated ethanol also saw an increase of 0.63%; and only the S10 diesel, with a 10% biodiesel blend, recorded a decrease of 0.25%.

The reduction in the price of natural gas and the Federal Government’s efforts to expand the production and supply of this product in the country can bring economic and environmental benefits. In addition, the expansion of the pipeline network can contribute to the development of new markets and the diversification of the Brazilian energy matrix.

With these measures, the Federal Government and Petrobras demonstrate a commitment to promote the competitiveness of the sector and ensure access to natural gas at more affordable prices for the population and industry.