The slight fall of the exchange rate and the drop in gasoline and diesel prices in the international market reopened the window for diesel imports in Brazil and reduced the lag in gasoline prices in relation to the Gulf of Mexico, which is a reference for Brazilian importers. That also reduces the pressure for Petrobras to raise the price of gasoline, whose last adjustment was about two months ago. According to the Brazilian Association of Fuel Importers (Abicom), the average gasoline price in Brazil in relation to the foreign price fell 6%, while the price of a liter of diesel increased 3% in the international market. In other words, if Petrobras uses the import parity (PPI), it will reduce diesel by R$0.13 per liter and increase gasoline by just R$0.24 per liter. However, the state-owned company stated that it would rather choose for longer intervals than directly passing on the volatility of the international market to the Brazilian market.
Sources: Agência Estado/Nova Cana (*Translated by Ia Niani)