Petrobras Clarification on News: Gasoline and Diesel Price Policy

Rio de Janeiro, May 22, 2018 – Petróleo Brasileiro S.A. – Petrobras informs that it has received Letter No. 1113/2018-SAE, which requests the following clarification:

Craft nº 1113/2018-SAE

“Dear sir,

We refer to the news published on 05/22/2018, especially by the newspaper O Estado de São Paulo, under the heading “High of 56% in diesel in 10 months leads to protests and the government promises measures” by the newspaper Valor Econômico , under the heading “Petrobras and dollar in high put government under pressure”, under the heading “Petrobras will reduce prices of diesel and gas in the refineries from Wednesday”, and by the G1, under the title “Petrobras reduces price of fuels and says that policy of readjustment does not change “.

We determined to provide clarification on the news transmitted, by 9am tomorrow (05/23/2018), with your confirmation or otherwise, as well as other information considered important, especially the demonstration of the application of the current pricing policy, according to the measure established in art. 16, 11, “and” of the Rules of Procedure of the Highlight Program on State Governance (Rules of Procedure). ”

Clarification

Petrobras clarifies that its current Gasoline and Diesel Price Policy, announced through a Material Fact published on 06/30/2017, remains unchanged.

In addition, the Company announces that the price reductions disclosed as of today, effective as of 05/23/2018, were defined in a strictly technical manner, and derive from the normal application of the principles and processes for readjustments set forth in the pricing policy.

Among these principles, it is worth noting the adoption of the international parity price (PPI) as a reference, which is calculated based on international prices, sea freight, internal transport costs and exchange rate.

In this sense, Petrobras’ price reductions reflected the variations observed in the items that make up the PPI, with emphasis on the exchange rate and maritime freight rates.

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