Petrobras to increase gas and fuel prices by over 7 percent

Brazilian oil and gas giant Petrobras said it will raise prices of kitchen gas canisters and gasoline by over 7 percent, citing “external volatility caused by circumstantial events.” The hikes will not directly affect consumers, as there is always a lag between when Petrobras changes its prices and when it is reflected in final prices charged by distributors.

This year alone, domestic gas canisters have gotten 45 percent more expensive, while gasoline has gone up by 62 percent. As reporter Amanda Audi explained, domestic gas canisters have become prohibitively expensive for poor households, forcing some Brazilians to cook with ethanol — which is highly dangerous and has led to an increase in life-threatening domestic accidents.

“These adjustments are important to ensure that the market continues to be supplied on an economic basis and without the risk of shortages by the different actors responsible for serving the various Brazilian regions: distributors, importers, and other producers, in addition to Petrobras,” reads a company statement.

Fuel prices have been one of the important factors behind inflation, which passed the 10-percent mark over 12 months for the first time in six years.

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