Petrobras Joins Brazil’s R$1-Per-Liter Diesel Subsidy

Petrobras’ board approved voluntary participation in Brazil’s new diesel subsidy program, which provides R$1 per liter for road-use diesel for 30 days, with a possible 30-day extension. The benefit can be combined with an existing R$1.12-per-liter diesel subsidy, potentially increasing government support for eligible volumes. Petrobras said its participation remains subject to implementing regulations and is consistent with its strategy of protecting market share, optimizing refining assets and maintaining long-term profitability without immediately passing short-term international price or exchange-rate volatility to domestic customers. The company also received R$448 million under an expired gasoline subsidy program, bringing its cumulative receipts from federal fuel-support measures for diesel, gasoline and liquefied petroleum gas to R$9.9 billion. Petrobras recently raised its diesel sales price to distributors by R$1 per liter while applying an equivalent subsidy-backed discount, leaving the effective price unchanged.