Petrobras cancels gasoline price increase, issuing a discount instead
Brazil's state oil company reversed its Wednesday announcement of a R$ 0.19 fuel hike, stating it will apply the amount as a discount to distributors instead.
Petrobras reversed its plan to raise pump prices after announcing new tax measures. At 20:44 on Wednesday, the company stated it would increase gasoline costs by R$ 0.19. However, in a note released at 00:53 Thursday morning, Petrobras canceled that price hike. The firm clarified that the adjustment actually represents the suspension of a previous discount for retailers. This means distributors will perceive a reduction of R$ 0.19 rather than an increase. The reversal stems from government decisions regarding fuel taxes. Last Tuesday, authorities stopped renewing a subsidy of R$ 0.44 per liter while simultaneously implementing a removal of R$ 0.63 in PIS/Cofins taxes on the fuel. The net difference between these two fiscal changes is exactly R$ 0.19. Consequently, there will be no price difference for distributors at Petrobras refineries compared to earlier predictions.
