Petrobras announces new fuel price cuts

Thursday, November 10, 2016

Brazilian state-run oil company Petrobras has announced its second fuel price cut in less than a month in a renewed effort to check rising imports.

The price of diesel at local refineries will fall 10.4% while gasoline will be 3.1% cheaper, according to a Petrobras statement. It did not say when the changes would take effect.

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Prices at the pump could dip as much as 6.6% and 1.3%, respectively, the Rio de Janeiro-based firm said.

Petrobras last month reduced wholesale fuel prices for the first time in nine years, marking down gasoline by 3.2% and diesel by 2.7%.

The firm has recently sold gasoline and diesel above international price benchmarks, capitalizing on the lower cost of imports to boost margins.

But the strategy means the company has lost market share as it fails to compete with rivals.

Petrobras previously subsidized fuel at the behest of the government to control inflation.