1. Home
  2. / Economy
  3. / Drop In Diesel And Gas Prices Starting Tomorrow (05/17): After Fuel Price Increases, Petrobras Takes Measures To Benefit Distributors And Ease Consumer Costs
Reading time 3 min of reading

Drop In Diesel And Gas Prices Starting Tomorrow (05/17): After Fuel Price Increases, Petrobras Takes Measures To Benefit Distributors And Ease Consumer Costs

Written by Flavia Marinho
Published on 16/05/2023 at 14:09
gasolina - diesel - preço - combustível - petróleo - refino - cambio - dólar
Preços da gasolina e do diesel despencam – Fila em posto de combustível Petrobras / Imagem campograndenews
Seja o primeiro a reagir!
Reagir ao artigo

Aware of the Importance of Diesel and Gasoline for Brazilian Society, Petrobras Seeks to Avoid Passing on the Volatility of the International Market and the Exchange Rate.

Petrobras, the largest oil producer in Brazil, announced a significant reduction in diesel and gasoline prices. Starting tomorrow (5/17), the company will reduce the average selling price of diesel A by R$ 0.44 per liter, from R$ 3.46 to R$ 3.02 per liter. Meanwhile, the average selling price of gasoline A will be reduced by R$ 0.40 per liter, from R$ 3.18 to R$ 2.78 per liter.

Impact on the Consumer’s Pocket and Factors Influencing the Final Price

This price reduction promoted by Petrobras will have direct implications for the consumer’s pocket. To better understand, it’s important to consider the composition of the fuels sold at gas stations. In the case of diesel S10, for example, which is composed of 88% diesel A and 12% biodiesel, Petrobras’ share in the final price to the consumer will be, on average, R$ 2.69 per liter. Taking into account the shares of other agents involved, according to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) for the period from May 7 to 13, the average price to the final consumer could reach R$ 5.18 per liter of diesel S10.

In the case of regular gasoline, which is composed of 73% gasoline A and 27% anhydrous ethanol, Petrobras’ share in the final price to the consumer will be, on average, R$ 2.03 per liter. Considering the shares of other involved agents, according to ANP data, the average price to the final consumer could reach R$ 5.20 per liter.

It’s worth noting that the price effectively charged at the gas station to the final consumer is also affected by other factors, such as taxes, the blend of biofuels, and the profit margins of distribution and resale. The reduction promoted by Petrobras primarily aims to maintain competitiveness against the main supply alternatives and the necessary market share for the optimization of refining assets in balance with national and international markets.

How Does Petrobras Determine Its Prices? – Influence of the International Market and the Exchange Rate

Petrobras, aware of the importance of its products for Brazilian society, seeks to avoid passing on the cyclical volatility of the international market and the exchange rate. This is done with the aim of preserving a competitive environment in accordance with current legislation.

The price of fuels in Brazil is influenced by several factors, including the price of oil in the international market, the exchange rate, transportation and storage costs, federal and state taxes, and the mandatory blend of biofuels.

Petrobras adjusts its prices at refineries based on market variations, without a defined periodicity. It is worth noting that the Brazilian state-owned company is the main producer and refiner of oil and derivatives in Brazil, but it is not the only one. It operates in a regime of free competition with other national and foreign companies that import and market fuels in the country.

To determine its selling prices at refineries, Petrobras follows a import parity policy (PPI), which considers the price of oil in the international market, the exchange rate, transportation costs, and customs taxes. The PPI aims to ensure that Petrobras’ prices are competitive with those of importers and that the company does not incur losses or subsidize the internal market.

Trusted Source and Transparency

Transparency is fundamental for Petrobras, and the company seeks to contribute to a better understanding of society regarding fuel prices. To this end, the company provides on its website information about its share and that of other agents in the formation and composition of average fuel prices to consumers.

Flavia Marinho

Flavia Marinho é Engenheira pós-graduada, com vasta experiência na indústria de construção naval onshore e offshore. Nos últimos anos, tem se dedicado a escrever artigos para sites de notícias nas áreas militar, segurança, indústria, petróleo e gás, energia, construção naval, geopolítica, empregos e cursos. Entre em contato com flaviacamil@gmail.com ou WhatsApp +55 21 973996379 para correções, sugestão de pauta, divulgação de vagas de emprego ou proposta de publicidade em nosso portal.

Share in apps