Petrobras Joins Brazil Diesel Subsidy to Stabilize Prices
Petrobras approved participation in a new government diesel subsidy program to mitigate rising oil prices ahead of Brazil's October presidential election.
The board of Petrobras, Brazil's state-run oil company, approved participation in a new government subsidy program for diesel oil producers on September 19. The program provides 1.00 real per liter for 30 days, with a possible 30-day extension, and operates cumulatively with an existing subsidy of 1.12 reais per liter.
To maintain stable prices for distributors while utilizing the subsidy, Petrobras increased diesel prices by an average of 1 real per liter and simultaneously applied a discount of the same amount. The company also reported receiving 448 million reais from a gasoline subsidy program for sales between July 16 and 31. Total accumulated subsidies for diesel, gasoline, and LPG have reached 9.9 billion reais.
President Luiz Inacio Lula da Silva implemented these measures to cushion the impact of rising oil prices caused by the war in Iran. The move comes as the administration seeks to stabilize the economy ahead of the October presidential election.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play