Brazil’s Petrobras Willing to Wait to Set Fuel Price Cut

(Bloomberg) -- Petroleo Brasileiro SA, known as Petrobras, is willing to wait to set fuel price cuts despite the recent drop in costs in the international market, Folha de S. Paulo newspaper reports citing an unidentified person close to the state-owned company’s management.

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Since the implementation of the new pricing policy in May 2023, the giant oil company has spent long periods without adjustments, and the premium obtained now helps to offset losses from other periods, according to the report.

There is also volatility in the market that does not yet allow the establishment of a new level for global oil prices. Data from markets indicates that Petrobras has been selling gasoline above parity since mid-August, according to the newspaper.

Inflation

Finance Minister Fernando Haddad said that he is worried about inflation stemming from the record drought in Brazil. The extreme weather could have an impact on food and energy prices, he said on Wednesday.

The comments were made a week before the central bank’s next monetary policy decision. Financial markets are predicting a quarter-point increase to the benchmark Selic interest rate.

Higher borrowing costs will not solve the climate’s impact on food and energy prices, Haddad added.

Lower House

On Wednesday, President Luiz Inacio Lula da Silva will meet at the Presidential Palace with lawmaker Elmar Nascimento, who is expected to run for lower house speaker next year, said O Globo, without mentioning how it obtained the information. Institutional Relations Minister Alexandre Padilha had told journalists on Tuesday that Lula was open to receiving candidates for the race, and that Nascimento had already requested an audience.

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