Petrobras reduces gasoline and cooking gas prices starting this Saturday (31)

Sao Paulo-SP) – Petrobras announced this Friday (30) a new reduction in the average price of gasoline for distributors. The statement comes a day after the full collection of federal taxes on fuel was returned.

For analysts and industry representatives, the cut seeks to mitigate the impact of the reenonation. According to the state-owned company, the price of gasoline will be reduced by R$ 0.14 per liter in refineries starting this Saturday (1st).

This represents a decrease of 5.3%. The value of gasoline A will be R$ 2.52 per liter.

Petrobras also announced this Friday a reduction in the average price of LPG, cooking gas, for distributors. The cut will be R$ 0.10 per kilo (3.9% less) starting this Saturday.

Thus, the value will go from R$ 2.5356 to R$ 2.4356, equivalent to R$ 31.66 per 13-kilogram cylinder.

In the case of gasoline, the new cut adds to a reduction that had been announced by the state-owned company on June 15. At the time, the drop was R$ 0.13.

This Thursday (29), the old PIS/Cofins and Cide taxes were applied again on gasoline, ethanol and aviation kerosene, according to the Federal Revenue Service.

The taxes had been zeroed by former President Jair Bolsonaro (PL) close to the 2022 elections and were partially reintroduced by the Luiz Inácio Lula da Silva (PT) government in March.

The full return was expected after the change in Petrobras’ pricing policy, which abandoned the import parity price (PPI) in May.

The National Federation of Trade in Fuels and Lubricants (Fecombustíveis) estimated that the reenactment this week could increase the acquisition cost for gas stations by BRL 0.33 per liter for gasoline and BRL 0.22 per liter for ethanol. hydrated.

After the announcement of the cut in refineries, Petrobras shares, which had already started the day in decline, deepened the losses this Friday. At 1:10 pm, the oil company’s common shares fell 3.55%, and preferred shares, 4.02%.

“The reduction [nas refinarias] it is a way to offset, even partially, the increase due to federal taxes”says Sergio Araújo, executive president of the Brazilian Association of Fuel Importers (Abicom).

MORE ABOUT GASOLINE

As gasoline sold at gas stations contains 27% anhydrous ethanol, the portion charged by Petrobras per liter should remain at R$ 1.84 after the cut, the state-owned company said.

The final impact on consumers, however, depends on the commercial policies of distributors and service stations.

The average final price of gasoline at gas stations, considering data from all over Brazil, was R$ 5.35 per liter last week, according to a survey by the ANP (National Agency of Petroleum, Natural Gas and Biofuels).

The final amount charged to consumers is higher because it includes taxes, transport costs and the profit margin of distributors and points of sale.

“Petrobras’ price reduction has as its main objectives the maintenance of the company’s price competitiveness in relation to its customers’ main supply alternatives and the necessary market share for the optimization of refining assets in balance with the national and international markets”

declared the state-owned company in a note this Friday.

According to Abicom, the average price of gasoline practiced by the company was on average R$ 0.34 below the international parity at the opening of the market. Thus, the scenario would open space for an increase, not a cut.

Petrobras, however, abandoned this concept in its new pricing policy and has been practicing prices below par since then.

Amance Boutin, fuel specialist at Argus, said in a report that the state-owned gasoline reduction announcement was expected amid the resumption of federal taxes.

The Federal Revenue estimates that the impact on revenue from the re-encumbrance of gasoline, ethanol and jet fuel will be BRL 14.8 billion, considering the period between June 29 and December 31, 2023.

*With information from Folha de S.Paulo

Read more:

Low vaccination of the elderly lights up alert for flu cases

Banco do Brasil will offer BRL 240 billion in the Harvest Plan 2023/2024

Lula delivers 446 Minha Casa, Minha Vida properties in Rio Grande do Sul