Petrobras Board Backs New Diesel Subsidy Worth 1 Real per Litre
Petrobras' board approved joining a diesel subsidy of 1 real per litre for 30 days, extendable by another 30 and cumulative with an existing 1.12-real subsidy.
Petrobras said its board has approved the company's participation in a new government subsidy programme for diesel producers, valued at 1.00 real per litre over 30 days.
The subsidy can be extended for a further 30 days and is cumulative with an existing diesel support of 1.12 reais per litre.
Earlier in the week, the state-run oil firm raised diesel prices to distributors by an average of 1 real per litre while simultaneously offering a discount of the same amount. The offsetting moves leave Petrobras' prices to distributors unchanged, even as the company benefits from the subsidy.
In a separate statement, Petrobras said it had received 448 million reais in payments under a gasoline subsidy programme, tied to sales between July 16 and July 31. Total accumulated subsidies across diesel, gasoline and LPG programmes have reached 9.9 billion reais.
Since the start of the war in Iran, Brazilian President Luiz Inacio Lula da Silva has moved to cushion the effects of higher oil prices ahead of October's presidential election, in which he is seeking a fourth non-consecutive term.