Petrobras reduced the price of gasoline by 9.5% and that of diesel S10 and S500 by 6.5% at refineries, the biggest drop of the year. The reduction starts to value as of Friday, 13. The last adjustment had been on February 19, when the company increased the price of gasoline by 3% and kept it that of diesel. The fall in oil prices started after the crisis triggered by Russia and Saudi Arabia, which led the Middle Eastern country to increase production and reduce prices practiced by the state-owned Saudi Aramco after the failure of negotiations between the Organization of Petroleum Exporting Countries (OPEC) and allied countries for a coordinated reduction in the supply of the commodity. The initiative is related to the economic impact of the coronavirus epidemic, which has shaken markets around the globe and led entities to review projections of the global economy in 2020. Valid prices are the average of those practiced at 37 Petrobras refineries, spread across the regions Southeast, North, Northeast and Midwest. The transfer to distributors depends on several factors, including dealer margins, mix of biofuels and taxes. The readjustment of prices downwards or upwards takes into account the practice of competitive prices, such as international parity price (PPI), margins to remunerate the risks inherent to the operation, level of market share and protection mechanisms via derivatives.
Source: Canal Rural