Petroleo Brasileiro SA (PBR), also known as Petrobras, said Monday that it will reduce domestic diesel prices starting Monday as part of a Brazilian government program aimed at cushioning consumers from higher fuel costs linked to geopolitical tensions in the Middle East.
The state-controlled oil producer said it will lower its average diesel selling price to distributors by 0.3515 reais per liter, or 9.6%, to 3.30 reais per liter starting June 1.
Petrobras sid the reduction is tied to a federal subsidy program designed to offset the reinstatement of Brazil's PIS and Cofins fuel taxes.