Petrobras Executive Board approves complementary hedge mechanism to the gasoline pricing policy

Rio de Janeiro, September 6, 2018 – Petróleo Brasileiro S.A. – Petrobras, in addition to the releases disclosed on 10/14/2016 and 06/30/2017, informs that its Executive Board approved on Wednesday, September 5, a complementary hedge mechanism to give additional flexibility to the gasoline pricing policy management.

Petrobras believes that it is important to implement mechanisms that allow it to have the option to change the frequency of the daily gasoline price adjustments in the domestic market, being able to even keep it stable for short periods of up to 15 days, reconciling its business interests with the demands of its customers and market agents in general.

The hedge mechanism can be applied in times of high market volatility, in order to give a financial result equivalent to what would be obtained with the current practice of daily adjustments, which also remains the company’s option.

The principles of import parity price (IPP), margins to remunerate the risks inherent to the operation and the level of market participation remain in force, as well as the correlation with the variations of the gasoline price in the international market and the exchange rate.

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