Petrobras announces changes in diesel pricing

Rio de Janeiro, March 26, 2019 – Petróleo Brasileiro S.A. – Petrobras informs that yesterday its Executive Board approved a change in the frequency of diesel prices adjustment.

Diesel prices at the company’s refineries, which correspond to around 54% of the final consumer prices, will be adjusted by periods of not less than 15 days. Petrobras will continue to use protection mechanisms, such as hedge with derivatives, aiming to preserve the profitability of its refining operations.

The company will keep complying with import parity prices (IPP), thus refraining from practices that could represent the exercise of monopoly power, since it owns 98% of Brazil’s refining capacity.

In this regard, it should be noted that a research covering 163 countries – see Globalpetrolprices.com – reveals that the diesel price to the final consumer in Brazil is 18% lower than the global average, placing it at the 57th position, therefore lower than the prices noted in 106 countries.

The principles guiding the practice of competitive prices are maintained, such as import parity price (IPP), margins to pay for the risks inherent to the operation and level of market share.

Finally, Petrobras informs that its subsidiary Petrobas Distribuidora S.A. (BR) is developing a payment card to implement over an estimated period of ninety (90) days that will enable the purchase of diesel by truckers at a fixed price at the BR branded stations (Truck Driver Card). The Truck Driver Card will serve as an option to protect against price volatility, thus ensuring stability when traveling.

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