Brazilian President Dilma Rousseff has approved a resolution to maintain the current system for establishing the minimum price of oil on which royalty payments are paid by state-run company Petroleo Brasileiro SA to local governments.
The resolution, announced in the official government gazette on Friday, is a victory for Brazil’s oil industry, which has been worried by calls to raise its taxes to make up for shrinking royalty revenues in the wake of the collapse in global oil prices.
The so-called “Brent Dated” index, based on a seven-day rolling average price for crude, will be used up to the price level of $50 a barrel, the National Energy Policy Council said in the government gazette.
Brazil Energy Insight 
Leave a comment