Petrobras joins 1-real-per-liter diesel subsidy program for 30 days

  • Petrobras approved participation in a new government subsidy program for diesel producers.
  • 1 real per liter is available for 30 days, with a possible 30-day extension.
  • Petrobras received 448 million reais from a gasoline subsidy covering July 16-31 sales.

Petrobras’ board approved the Brazilian state-run oil company’s participation in a new government diesel subsidy program worth 1 real ($0.19) per liter for 30 days. The benefit can be extended once for another 30 days and is cumulative with an existing subsidy of 1.12 reais per liter. Petrobras had raised diesel prices to distributors by an average of 1 real per liter earlier in the week, while applying an equivalent discount, so its distributor prices remained unchanged while it received the subsidy. Separately, Petrobras received 448 million reais from a gasoline subsidy program tied to sales from July 16 to July 31. Total accumulated subsidies for diesel, gasoline and LPG programs reached 9.9 billion reais. Brazilian President Luiz Inacio Lula da Silva has sought to cushion the impact of higher oil prices ahead of October’s presidential election, in which he is seeking a fourth non-consecutive term.

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