Petrobras reduces cooking gas price for the first time since April

Brazilian oil and gas giant Petrobras has announced that it will reduce the price of cooking gas (liquified petroleum gas, LPG) for distributors by 4.7 percent starting on Tuesday. With the reduction — the first since April — a 13-kilogram cylinder (the most consumed by Brazilian families) will cost BRL 52.34 (USD 10.20).

It is impossible to say how much of the decrease will reach the end-consumer, as this will depend on each reseller. In the week of August 28-September 3, the price of the 13-kilogram cylinder averaged BRL 111.57 in the country, according to a survey by the National Oil Agency ANP.

The price of cooking gas last decreased on April 9 of this year. Before that, however, LPG prices were on an upward trajectory. In March, Petrobras had increased its cooking gas prices by 16.1 percent. This had followed a 7.2=percent bump in October last year and a 6-percent increase in July before that.  

As always when it revises its prices down, the state-controlled company stated that the move is in line with its “pricing practice, which seeks to balance its prices with the market.” 

International oil prices have been falling for the last couple of weeks. The Brent oil benchmark hit its lowest point since Russia invaded Ukraine in February, amid fears of an economic slowdown in China and a consequent decrease in demand.

Because of the drop in oil prices, Petrobras has also lowered its rates for gasoline four times in a row and those for diesel twice in less than two months.

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