Petrobras slashes gasoline prices for a third time in under a month

Petrobras slashes gasoline prices for a third time in less than a month
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Brazilian oil and gas giant Petrobras announced a new cut to gasoline prices — the third in less than a month. From Tuesday, gasoline sold at refineries will be 4.85 percent cheaper. Given the company’s mammoth market share, the move will have an impact on prices at the pump.

The move comes just four days after announcing price cuts to diesel. As with the other times it adjusted its prices down, Petrobras said the move is in line with the fall in oil prices internationally. The Brent benchmark is at its lowest point since Russia invaded Ukraine in February, amid fears of a slowdown in China.

Per Abicom, an association of Brazilian fuel importers, there is still room for prices in Brazi to fall further, as they remain above international levels.

Still, pushing fuel prices down is in line with the government’s wish to inject some oomph into an economy hampered by a loss in purchasing power due to high inflation and interest rates — as well as an elevated level of indebtedness. 

Lower energy prices were responsible for a monthly deflation of 0.68 percent in July. Transportation and housing costs were down by 4.5 and 1 percent, respectively, while other groups of goods and services became more expensive.