Petrobras announced this Friday (17) that it will adjust petrol and diesel prices starting this Saturday (18). The average selling price of gasoline will increase by 5.2%. For diesel, the adjustment will be 14.3%.

Gasoline will have a 5.3% adjustment and diesel 14.2% – Photo: Yulia Avamotiv/Pexels/Disclosure/ND

Gasoline that has not been adjusted for 99 days will fall from R$3.86 to R$4.06 per liter at the price sold to distributors. Already diesel fuel, which has not been adjusted since May 10 (39 days), will rise in price from 4.91 to 5.61 reais per liter.

pump price

It is worth remembering that the final value of fuel prices at gas stations also depends on taxes and profit margins of distributors and resellers. According to the ANP (National Agency for Petroleum, Natural Gas and Biofuels), in the last week ending on the 11th, the average price of gasoline in the country was 7,247 reais and that of diesel was 6,886 reais.

Considering the mandatory blend of 73% gasoline A and 27% anhydrous ethanol in the formulation, Petrobras’ share of the consumer price will rise from an average of R$2.81 to R$2.96 per litre.

For diesel, with a mandatory blend of 90% diesel A and 10% biodiesel for the formulation sold at gas stations, the price of Petrobras’ share would rise from an average of R$4.42 to R$5.05 per litre.

Petrobras applies the PPI (International Price Parity) policy, which takes into account fluctuations in the price of a barrel of oil on the international market and in the exchange rate when calculating the determination of fuel prices.

Petrobras justifies the increase

Petrobras said in a note that “it has sought to balance its prices with the world market, but without immediately passing on to domestic prices the volatility of international quotes and the exchange rate.”

The state company also notes that “it is sensitive to the moment that Brazil and the world are facing, and understands how fuel prices affect the lives of citizens.” However, according to the company, “when there is a structural change in the level of world prices, Petrobras needs to seek convergence with market prices.”

Bolsonaro criticizes perestroika

As has been reported in recent days, the fuel adjustment has caused tensions between President Jair Bolsonaro (PL) and the company. On social media, the chief executive said that Petrobras “could plunge Brazil into chaos” with a new increase in fuel prices.

The announcement was made this Friday morning (17), before the state-owned company announced the adjustment. In the text, the President stated that the federal government is against the bailout. “Not only because of the exaggerated profits of Petrobras in the midst of the global crisis, but also because of the public interest provided by the State Companies Law.”

Petrobras could throw Brazil into chaos. Its president, directors and advisors are well aware of what happened with the 2018 trucker strike and the disastrous consequences for the Brazilian economy and the lives of our people.

— Jair M. Bolsonaro (@jairbolsonaro) June 17, 2022

measurements

Congress approved this week a bill capping the ICMS (goods and services tax) rate. The measure is one of the federal government’s attempts to lower fuel prices in an election year. Now everything depends on the presidential sanction.