Petrobras Third Phase of the Diesel Price Subvention Program: Adjustment of sale prices

Rio de Janeiro, August 31, 2018 – Petróleo Brasileiro S.A. – Petrobras, further to the Material Fact disclosed on 8/7/18, informs that, due to the methodology established in the National Agency of Petroleum, Natural Gas and Biofuels (ANP) Resolution no. 743, of 8/27/18, the diesel price increase  in the international market, and the exchange rate devaluation, the average price of diesel is now R$ 2.2964 per liter, which represents a 13% adjustment.

The value corresponds to the arithmetic average of road diesel prices free of taxes charged by Petrobras at its refineries and terminals in the Brazilian territory for the second period of the 3rd phase of the Diesel Economic Subvention Program (8/31/18 to 9/29/18).

This new period in the Program provides for adjustment in regional average prices and maintains the condition that the subsidy will be paid against proof that the prices charged by qualified companies are lower than the sale prices defined by ANP for the five regions (South, Southeast, Mid-West, North without Tocantins and Northeast with Tocantins).

The company will continue the economic analysis of the subvention program for the subsequent periods.

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

This report on Form 6-K shall be deemed to be incorporated by reference into the Exchange Offer Prospectus, dated August 17, 2018, relating to the previously announced exchange offers by Petrobras Global Finance B.V., a wholly-owned subsidiary of Petrobras.

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