Brazil's Petrobras Ups Gasoline Prices 7%, First Hike Under New CEO
07.09.2024 By Tank Terminals - NEWS

July 09, 2024 [Reuters]- Brazilian state-run oil company Petrobras on Monday announced its first gasoline price hike in almost a year, and also hiked the price of gas used for cooking and heating.


In a statement, the oil giant announced it will boost gasoline prices for distributors by 7% starting on Tuesday.

Petrobras shares closed up more than 2% on Monday following the announcement, while Brazil’s benchmark Bovespa index was up 0.2%.

The announcement marks the first Petrobras gasoline price tweak since Magda Chambriard replaced Jean Paul Prates as chief executive in May. The company last raised gasoline prices 16% last August as global oil prices surged. In October, Petrobras cut gasoline prices by 4%.

Last year, Petrobras ditched a more market-based pricing policy in favor of one that gave it more flexibility to smooth out price swings.

Analysts at Goldman Sachs wrote in a note to clients that the price paid by gasoline distributors in Latin America’s biggest economy will still be about 14% lower than market prices.

“On the one hand, we continue to see gasoline prices below international parity and with crack spread margins on the negative side,” according to the note, which added that the price hike should allay investor concerns over potential political intervention in pricing.

Gasoline will now rise 0.20 reais ($0.0366) per liter to 3.01 reais/liter. Average prices for Liquefied Petroleum Gas, used mostly for cooking and heating, will also go up, by 3.10 reais to reach 34.70 reais per 13-kg cylinder, according to a company statement.

Andrea Angelo, a strategist at brokerage Warren Investimentos, said the fuel hikes could push up 2024 inflation by 18 basis points, with the benchmark IPCA consumer price index now forecast to rise to 4.28%.


Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Plans to Build a $5.5 Billion Refinery in Cushing Have Been Delayed
07.19.2024 - NEWS
July 19, 2024 [Simbaforkids]- In May 2023, it was announced that Southern Rock Energy Partners wo... Read More
Oil Prices Gain 2% on Big US Storage Withdrawal, Weaker US Dollar
07.19.2024 - NEWS
July 19, 2024 [Reuters]- Oil prices climbed about 2% on Wednesday on a bigger-than-expected weekl... Read More
Vopak Starts Office in Japan for Storage of Energy Transition Fuels
07.19.2024 - NEWS
July 19, 2024 [Reuters]- Dutch tank storage firm Vopak has opened a new office in Tokyo, Japan, t... Read More
CMC Contract for LNG Vasiliko Likely to be Terminated
07.19.2024 - NEWS
July 19, 2024 [Cyprus Mail]- The contract between the state Natural Gas Infrastructure Company (E... Read More