Petroleo Brasileiro SA Petrobras
The state-run company said in a statement that its price to distributors went down by 0.22 reais per liter, or 4 cents, to 5.19 reais. It said that the price cut will take effect on Friday and was caused by a drop in international benchmark prices. Last Thursday, Petroleo Brasileiro SA Petrobras Preference Shares (BVMF:PETR4) cut the price of diesel for the first time in more than a year.
After Bolsonaro asked for help, Petroleo Brasileiro SA Petrobras Preference Shares (BVMF: PETR4) cut the price of diesel.
Voters blame Bolsonaro for high gas prices, which has put the oil producer in the middle of a political storm. This year, oil prices went up to triple digits, which caused diesel and gasoline prices to hit all-time highs. In order to stop inflation, Bolsonaro put a cap on taxes on electricity and gasoline. This caused consumer prices in Brazil to drop by the most ever in July.
Since Caio Paes de Andrade took over as CEO at the end of June, the company, which is owned by the government, has been cutting jobs. Bolsonaro has fired three of his predecessors for keeping track of the prices of fuel on the international market.
Bolsonaro praised the lower price of diesel on social media, tweeting that Brazil has “one of the lowest average prices for fuel in the world.” Goldman Sachs Group Inc. (NYSE:GS) analysts led by Bruno Amorim wrote to clients that Petroleo Brasileiro SA Petrobras Preference Shares (BVMF: PETR4)‘ diesel price is 11% higher than the benchmark Gulf Coast diesel price, while gasoline prices are 8% lower.
Oil prices are getting close to their lowest point in six months, which puts more pressure on the government to lower fuel prices. After making a lot more money than analysts expected in the second quarter, Petroleo Brasileiro SA Petrobras Preference Shares (BVMF: PETR4) recently announced a huge dividend payment of $17 billion.
Featured Image: Megapixl @Mohammedsoliman4
