Petrobras to Cut Gasoline and Diesel Prices

10 Nov 2016   Brazil

Brazilian state-run oil company Petróleo Brasileiro SA said Tuesday it has decided to reduce prices for gasoline and diesel, after more than a year of using its near-monopoly in the domestic fuel market to shore up its cash flows. Petrobras’ board decided to reduce the price of diesel and gasoline sold at its Brazilian refineries by 10.4% and 3.1%, respectively, the company said in a press release, adding that the price cuts reflect a drop in international oil prices in recent weeks. Petrobras burned billions of dollars in cash from 2011 to 2014 by subsidizing fuel prices in the domestic market. Now burdened with the global oil industry’s largest pile of debt, the company since last year has sold gasoline and diesel at a hefty markup. But Petrobras executives fear that doing […]

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