Petrobras fuel plan to halt profit drain
Politically sensitive subsidies are in the firing line as Brazil’s state-controlled oil company prepares its domestic fuel policy
RIO DE JANEIRO — Brazil’s state-controlled oil company Petroleo Brasileiro (Petrobras) was preparing to announce a domestic fuel policy that would avert costly subsidies that drained profits during Brazil’s previous government, CEO Pedro Parente said.Petrobras, which has not adjusted petrol and diesel prices for more than a year, would set prices at or above parity with international levels, Parente said om Friday in New York.The company planned to make changes more frequently on factors including international prices, the exchange rate and its market share, he said.From now on, Petrobras would only benefit from the gap between domestic prices and the international market, not lose, Parente said.While Petrobras planned to maintain domestic prices above global levels, it would not announce a specific formula that would trigger automatic increases or decreases, Parente said. The firm has been selling petrol and diesel at a premium for almost two years, helping to recover an estimated ...
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