In The Last 4 Weeks, The Price of Diesel S-10 by The State-Owned Company Has Exceeded The Import Parity Price (PPI) of The Brent Crude Oil Barrel.
After the reduction of 6.6% or R$ 0.27 per liter on the diesel S-10 sold at Petrobras’ refineries on Thursday, the 7th, the state-owned company still keeps the fuel, on average, R$ 0.05 per liter above the Import Parity Price (PPI). This pricing pattern is claimed by market agents, but it was abandoned by Petrobras back in May. The findings are from the Oil Social Observatory (OSP).
With four consecutive weeks of prices above this international reference, PETR4, as it is known in the market, informs the OSP that it closed the month of November with diesel exceeding R$ 0.22 the PPI on average. The OSP’s survey shows that the largest difference in diesel was R$ 0.30 per liter during the week of November 20 to 24.
Petrobras Raises Diesel Above The International Parameter
This was the first month, since the change in the fuel pricing policy, that the diesel supplied by the state-owned refineries exceeded the Import Parity Price (PPI), according to data from the Oil Social Observatory (OSP).
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The price of Petrobras’ diesel was R$ 0.01 above the PPI, maintaining the average import price. Furthermore, the highest difference above Petrobras was R$ 0.06 per liter between November 13 and 17 compared to the international parameter.
Petrobras Adjusts Diesel Price Even Amidst Decline in The International Market
The data also indicates that since the last increase in diesel price, carried out by Petrobras on October 29, when the liter rose from R$ 3.80 to R$ 4.05, the PPI has already decreased by 14%. According to the economist from OSP and the Brazilian Institute of Political and Social Studies (Ibeps), Eric Gil Dantas, this was the first time since the end of the PPI that the state-owned company maintained prices above the import parameter.
Impact of The Decline in International Fuel Prices on Petrobras
According to Dantas, Petrobras’ diesel was above the PPI in November because the company maintained the price even amidst the decline in the international market. Last month, the Brent crude oil barrel, an international reference, fell more than US$ 10, which directly impacted the price of diesel produced by Petrobras.
‘Petrobras’ inaction in the face of the decline in international fuel prices at that moment caused the state-owned company, for the first time since the end of the PPI, to have prices above the import parameter. Until then, Petrobras had always maintained average prices considerably below the international ones’, claims Dantas.
Source: Info Money

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