Brazil's Petrobras lowers diesel prices for first time in more than a year
Brazilian state-run oil company Petrobras said it will lower refinery gate diesel prices for the first time in more than a year, as local prices currently stand above import parity.
The company said in a statement it would cut the price of diesel sold to distributors by 4.6% to 3.55 reais ($0.6197) per liter starting April 1, while gasoline prices are set to remain unchanged.
The move marks the first diesel price tweak by the oil giant since early February, when it delivered a nearly 7% hike, and the first cut since December 2023.
It should be good news for leftist President Luiz Inacio Lula da Silva, whose approval ratings have declined sharply in recent months amid high inflation.
Under Lula, Petrobras has adopted a new pricing strategy that is intended to protect fuel prices in Brazil from international volatility, while still keeping sales profitable for the firm.
Petrobras' move follows the appreciation of Brazil's currency, which has strengthened nearly 8% against the U.S. dollar this year, and occurred as global oil prices have traded below their levels at the time of the company's last price hike.
For most of this month, Petrobras' diesel prices have stood above import parity and were 2% above it on Monday, according to Abicom, a fuel imports association.
In addition to the diesel price cut, Petrobras CEO Magda Chambriard told an event in Rio de Janeiro that the company would also lower jet fuel prices, without providing further details.
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