Petrobras in Brazil will delay raising fuel prices

Petrobras in Brazil will delay raising fuel prices

Petrobras in Brazil will delay raising fuel prices
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  • Petrobras management told the government on Monday that Brazil’s diesel and gasoline prices are lagging behind international markets.
  • The final decision depends on factors like oil prices and the exchange rate, “but the idea is to hold,” a source says.
  • Congress has approved a bill that caps the ICMS state tax on fuels and other items.
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Brazilian state-run oil organization Petrobras (PETR4.SA) will try not to raise fuel costs until after Congress completes the process of discussing further tax reductions, two sources near the matter told Reuters on Tuesday.

The company’s administration told the public authority on Monday that Brazil’s diesel and fuel costs are lingering behind global business sectors.

Diesel costs, which the organization expanded in May, were 15% underneath worldwide business sectors on Monday, while gas costs were over 20% lower than the import equality cost.

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A ultimate conclusion relies upon factors like oil costs and the swapping scale, “yet the thought is to hold,” expressed one of the sources on state of obscurity.

On Monday, Brazil’s Senate endorsed a bill that covers the ICMS state charge on energizes and different things, an action pointed toward decreasing costs to customers. The bill actually should be decided on by the nation’s Lower House.

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That’s what the rationale is assuming the last vote is fruitful, it would be “less horrendous” to do a cost climb, because of the lower taxation rate, said a source.

Petrobras said in a proclamation it keeps up with its obligation to serious market costs, while needing to stay away from prompt cost climbs brought about by unpredictability in the worldwide oil markets.

The Mines and Energy Ministry didn’t answer a solicitation for input.

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