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Petrobras “holds” fuel prices but warns that oil prices could reverse this scenario if the commodity reaches US$100

Written by Roberta Souza
Published 29/09/2023 às 18:15
oil, petrobras, fuels
Photo: Jovem Pan reproduction

According to the president of Petrobras, Jean Paul Prates, the price of fuel could be impacted if a barrel of oil reaches the value of U$100

The president of Petrobras, Jean Paul Prates, highlighted the importance of oil prices and their influence on fuel adjustments. Prates revealed that, although the state-owned company does not plan immediate changes in prices, it is closely monitoring market developments to ensure the company's profitability, according to the Info Money website.

He emphasized that fuel price adjustments will occur if the oil price level consolidates, similar to the last increase in August. Furthermore, Prates expressed concern regarding the possibility of oil reaching US$100 per barrel in October, which he considers an “important psychological barrier”.

Maintain the company's profitability with fuel prices

According to Prates, “the models for now are indicating that it is possible to keep (fuel prices) at the same level, without there being absolutely no risk to the company's profitability.” This statement was made after an event with Olympic athletes sponsored by Petrobras. He clarified that President Luiz Inácio Lula da Silva, with whom he recently met, did not request at no time were fuel prices kept artificially low. Prates reinforced that the objective continues to be “to Brazilianize prices”.

The commitment to “Brazilianizing prices” goes beyond a mere presidential campaign strategy, according to Prates. He emphasized that Petrobras is changing its pricing model and will make the necessary adjustments when the new oil price level is consolidated. Furthermore, Prates mentioned that the company's oil refineries are operating at 94% of their capacity, a significant increase compared to last year. This is, in part, due to the maintenance of the Regap refinery in Minas Gerais.

Negotiation with Braskem in progress

Regarding the sale of Novonor's stake in Braskem, Prates informed that negotiations are progressing. Petrobras, as a partner, has the right of first refusal to acquire the asset, although the final decision has not yet been made. Prates explained: “Braskem is evolving. We are starting to receive information and focus on it. We are there, we have preemptive rights as a partner of Braskem, but we are not buying a new stake in Braskem. Let’s analyze whether it’s worth it or not.”

Petrobras holds a minority, but relevant, stake in Braskem. Sources claim that the decision of the state will be crucial to the outcome of the business. In short, Petrobras is attentive to the oil price scenario and is willing to make adjustments to fuel prices, as long as the new level is consolidated. Furthermore, the company is in the process of evaluating its stake in Braskem, a decision that could have a significant impact on the direction of this transaction.

Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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