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Petrobras Raises Wholesale Gasoline Prices, Offsets Part of Increase With Government Subsidy

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Brazil's Petrobras (PBR) said it will raise wholesale gasoline A prices, or refinery-level fuel sold to distributors before mandatory blending, by 0.48 Brazilian real ($0.095) per liter starting Thursday, while applying a partial offset through a government-linked subsidy mechanism.

The company said it will grant a 0.44 Brazilian real-per-liter subsidy, which reflects a value set by the Ministry of Finance and accounts for federal taxes on fuel sales.

After the adjustment and subsidy, the average price of gasoline A sold to distributors will increase from 2.57 Brazilian reais to 2.61 Brazilian reais/liter.

Petrobras said the impact on retail prices is partially mitigated by Brazil's mandatory blending rule, under which gasoline C sold at service stations is composed of 70% gasoline A and 30% anhydrous ethanol.

Based on that structure, the company said its share of the final pump price will rise from 1.80 Brazilian real to 1.83 Brazilian reais/liter.

Petrobras added that the adjusted component remains 27.6% below levels recorded on Dec. 31, 2022.

Price: $18.92, Change: $-0.05, Percent Change: -0.24%

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