For embattled oil producer Petroleo Brasileiro SA, the 35 percent surge in crude prices since March should be a godsend. In fact, it’s making life even worse for the state-controlled company.
Petrobras, which imports gasoline because it doesn’t produce enough to meet demand in Latin America’s biggest economy, is unable to raise fuel prices in Brazil because of government-imposed subsidies. Not only is it unable to pass on to consumers the cost of the more expensive fuel, it’s also selling it at a bigger and bigger loss domestically as the real plunges.
Brazil Energy Insight 
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