Petrobras cuts worth by R$0.15 at refineries, second reduce in a month
Reduction goes into effect at state-owned refineries from Friday, 29
THE Petrobras will again reduce the price of gasoline at its refineries, according to an announcement made this Thursday, 28th. The new value was reduced by BRL 0.15, a decrease of 3.9%from R$ 3.86 to R$ 3.71 per liter.
The change will take effect from Friday, 29.
This is the second reduction in Petrobras’ price in less than a month. On July 19, the state-owned company had announced a reduction of about 5%, equivalent to R$0.20.
“This reduction follows the evolution of reference prices, which stabilized at a lower level for gasoline, and is consistent with Petrobras’ pricing practice, which seeks to balance its prices with the global market,” Petrobras said in a note. .
Petrobras also stated that it equalizes its prices “without the transfer to domestic prices of the conjunctural volatility of international quotations and the exchange rate”.
Other fuels, such as diesel, LPG (used in bottled gas) and natural gas, remain at current prices.
The reductions in Petrobras’ price come amid the drop in the price of a barrel of oil on the international market, with fears of a global recession bringing down the price of the commodity.
After hitting almost $130 a barrel this year with the war in Ukraine, the Brent barrel has had recent drops and was quoted at close to US$ 108 in the early afternoon of this Thursday.
The two gas price cuts in July were the first made by Petrobras since December.
In the previous months, in the opposite direction, Petrobras had been increasing the price of gasoline in its refineries, when oil was on the rise in the international market.
How much will the price of gasoline fall?
With the cut, Petrobras’ share of the total liter of gasoline will drop from R$2.81 to R$2.70, on average, according to the oil company’s calculations. So, the reduction in practice is at least R$ 0.11 per liter to the consumer.
The rest of the final price at the pump (today close to R$6) concerns anhydrous ethanol, added to the gasoline mix, taxes and the distribution chain. Thus, the impacts on consumers may vary in different gas stations and states.
Before the Petrobras cut, the average price of gasoline sold at stations in Brazil, in the week ended July 23, was R$5.89.
The values are measured weekly by the National Agency of Petroleum and Biofuels (ANP), in a survey at more than 5,500 gas stations nationwide.
In addition, the reduction in the price of Petrobras gasoline concerns only the fuel in the state-owned refineries, which account for about 80% of gasoline sold in Brazil. The rest is sold by importers or privatized refineries, already at market prices.
Overall, gasoline sold to consumers has been falling this month. The price of gasoline as measured by the ANP (not adjusted for inflation) has fallen by 17% in the last four weeks.
In addition to the price of a barrel of oil, which directly affects the price of importers and private refiners in addition to Petrobras, there was a cut in the state ICMS rates and federal taxes zeroed for gasoline (federal taxes had already been zeroed for diesel previously ).
The tax cut came after a bill on the subject was passed in Congress in June, capping the ICMS tax rate at 17% – in effect, a reduction from more than 25% in most states previously.
Since then, states have announced a reduction in their rates, although a legal imbroglio on the matter continues in court.
The measure, although it serves to reduce fuel prices, was criticized for the high fiscal cost to states and the use of resources currently used in public services such as education and health. The loss calculated at the time of voting on the project was R$ 115 billion for states and municipalities this year alone.
At the other end, supporters of the cut and the federal government argue that the measure will serve to reduce generalized inflation and that states and municipalities have the cash to pay for the reduction. July is expected to have “deflation” with fuel cuts. Brazilian inflation in the IPCA, the main inflation index, closed June at 12%, one of the highest levels since the beginning of the Real Plan, but the market expectation is that it will end the year below 8%.