Key facts
- Petrobras will receive a 1.00 real per liter subsidy for diesel for 30 days.
- The subsidy is cumulative with an existing 1.12 reais per liter subsidy.
- Petrobras' prices to distributors remain unchanged despite an earlier price increase.
- The company received 448 million reais in payments from a gasoline subsidy program.
- Total accumulated subsidies for diesel, gasoline, and LPG programs reached 9.9 billion reais.
Brazil's state-run oil company Petrobras announced on Saturday that its board of directors has approved the company's participation in a new government subsidy program for diesel oil producers. The subsidy amounts to 1.00 real ($0.19) per liter and will be in effect for 30 days, with the possibility of extension for another 30 days. This new subsidy is in addition to an existing subsidy of 1.12 reais per liter.
Earlier in the week, Petrobras had announced an increase in diesel prices to distributors by an average of 1 real per liter, but simultaneously offered a discount of the same amount. As a result, the company's prices to distributors remain unchanged, while Petrobras benefits from the government's subsidy.
In a separate statement, Petrobras reported receiving 448 million reais in payments from a gasoline subsidy program, related to sales between July 16-31. The company also stated that the total accumulated subsidies for diesel, gasoline, and LPG programs have reached 9.9 billion reais.
Brazilian President Luiz Inacio Lula da Silva has been working to mitigate the impact of rising oil prices, particularly ahead of the upcoming presidential election in October, where he is seeking a fourth term.