Petrobras Cuts Diesel Price to R$3.30/Liter with R$0.35 Subsidy
PBR•Petrobras will reduce average diesel A price from R$3.65 to R$3.30 per liter starting June 1 through a R$0.3515/liter federal subsidy. This price is 37.4% below the December 2022 level after inflation, while a separate R$1.12/liter subsidy for producers remains under review.
1. Diesel Price Cut Details
Petrobras will reduce its average diesel A sales price to distributors from R$3.65 to R$3.30 per liter starting June 1, applying a federal subsidy of R$0.3515 per liter to offset reimposed PIS and Cofins taxes on diesel.
2. Inflation-Adjusted Pricing
The R$3.30 per liter price represents a 37.4% decline from the end-2022 diesel price after adjusting for inflation, reflecting the company’s aim to mitigate the impact of global oil-price volatility on domestic consumers.
3. Government’s Broader Subsidy Program
Brazil’s government has also authorized a R$1.12 per liter subsidy for diesel producers and importers, which Petrobras is currently reviewing to determine potential participation and disclosure to the market.
4. Strategic Implications
This pricing move highlights Petrobras’ strategy to balance domestic affordability, inflation control and market stability while managing fuel supply and protecting its refining margins under government guidance.
