Gasoline, diesel and cooking gas prices fall – 05/16/2023 – Market

Shortly after announcing changes in its fuel price policy, Petrobras announced this Tuesday (16) reductions in the prices of gasoline, diesel and cooking gas, confirming information that had been leaked by the government last week.

The price of gasoline at the state-owned refineries will drop 12.6%, or R$ 0.40 per liter. The price of diesel will be reduced by 12.8%, or R$ 0.44 per liter. Already the price of kitchen gas will fall 21.3%, or R$ 8.97 per cylinder of 13 kilos.

The new values ​​come into effect this Tuesday (16). The transfer to the consumer depends on the commercial policies of distributors and service stations. In the case of gasoline, part of the gain will be offset by the increase in ICMS, in early June.

The company had already signaled last week that it would cut prices, after government allies leaked information about a meeting between the president of the state-owned company, Jean Paul Prates, and president Luiz Inácio Lula da Silva (PT).

Domestic fuel prices are well above international prices, according to an estimate by Abicom (Brazilian Association of Fuel Importers). In the case of gasoline, for example, the difference was R$ 0.36 per liter at the opening of the market this Tuesday.

In its new pricing policy, Petrobras will no longer follow this parameter, known as PPI (import parity price), which simulates how much it would cost to import products.

Now, according to the state-owned company, the formation of prices targets the search for customers and the opportunity cost of selling the products. The expectation is that the change will contribute to reducing prices in the country.

Petrobras will not fail to follow the international prices of oil and its derivatives and says that the readjustments will continue without defined periodicity, “avoiding the pass-through to domestic prices of the conjunctural volatility of international prices and the exchange rate”.