Raizen says Petrobras should raise gasoline prices to level playing field

 (Reuters) – Brazilian state run oil firm Petrobras should raise gasoline prices in the domestic market to reflect high international oil prices and level the playing field, Ricardo Mussa, chief executive of energy company Raizen (RAIZ4.SA), said on Tuesday.

“At some point, Petrobras will have to make a move in gasoline … (the current price situation) is not sustainable (for the market), Brazil is not self-sufficient,” said Mussa during a call with analysts to comment on the company’s quarterly results.

Raizen is Brazil’s largest producer of ethanol, which competes with gasoline. A rise in gasoline prices by Petrobras would potentially benefit the company, which also operates in fuel distribution as one of the leading players.

Petrobras did not have an immediate comment on Mussa’s remarks.

Raising gasoline prices in line with the international market is important for the country to secure imported supplies from private companies, he noted.

“There is potential for an increase in gasoline in Brazil,” he said, citing a global oil price spike that touched a seven-year high on Monday. read more

Oil is down by some 4% on Tuesday, after Russia ordered that some troops return to their bases after military exercises in Ukraine. read more