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Brazil's Petrobras Cuts Diesel Price, Ends Temporary Discount, Leaving Prices Unchanged

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Brazil's state-owned petroleum giant Petrobras (PBR) said on Tuesday that it will reduce the sales price of diesel for distributors, starting from July 1.

The company said in a statement that prices will be reduced by 0.3515 Brazilian reals ($0.068) per liter, citing recent shifts in the domestic and international markets for oil and derivatives.

However, it also said that it was suspending a temporary discount of the same amount, which was part of the economic subsidy measure introduced in May. As a result, its prices to distributors remained unchanged, at an average value of 3.30 reais per liter.

Additionally, the Brazilian government said earlier in the day that it would cut a subsidy of 0.35 reais per liter starting from July. The subsidy was part of the government's measures to limit the impact of higher global oil prices, according to a Reuters report.

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