Petrobras increases refinery diesel prices

In line with the pricing policy announced by Petrobras in October 2016, the company raised the price of diesel sold at its refineries by 6.1% on average, in January 2017. The price of gasoline sold at its refineries remains unchanged. The decision is mainly due to the effect of the continued, although modest, rise in oil prices in international markets, the strengthening of the Brazilian real since the last price review, and adjustments to Petrobras’ competitiveness in the domestic gasoline and diesel markets.

The price changes also reflect seasonal movements in international oil product prices, as diesel prices have responded to higher demand during the Northern Hemisphere winter. As Brazilian law guarantees pricing freedom in the market for fuels and oil products, the refinery price changes made by Petrobras may or may not be reflected in consumers’ end prices.

This will depend on price changes made by other players in the fuel chain, especially distributors and gas stations. If the adjustments made are fully passed on and no changes take place in the other elements that make up the end price for consumers, diesel prices could increase by 3.8% or around R$0.12 per litre on average, notes Petrobras.