Petrobras Material Fact – Temporary Diesel Price Subsidy Program

Rio de Janeiro, May 28, 2018 – Petróleo Brasileiro SA – Petrobras informs that the federal government announced yesterday a reduction in the price of diesel oil of R$ 0.46 per liter, which will be achieved by reducing taxes and the subsidy to be paid by the Union.

As announced, the initial reduction will be maintained for 60 days and after that time the diesel price adjustments will become monthly.

Petrobras informs that the company will not subsidize the price of diesel and will not incur any loses, since it will be reimbursed by the Federal Government, in a modality still to be defined.

Petrobras had already reduced by R$ 0.2335 per liter the average amount of  diesel sold at its refineries on 05/24/2018, as disclosed to the market on 05/23/2018, for a period of 15 days, up to 06/07/2018. After this date, the new program announced by the government will be applied.

The company is evaluating the measures announced and the legal ramifications that will take effect.

Facts deemed relevant on the subject will be timely disclosed to the market.

 

 

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