Petrobras cancels gasoline hike, cuts distributor price

Petrobras announced early Thursday that it reversed a planned gasoline price hike of R$ 0.19 per liter. The company initially planned to raise the average refinery price to R$ 3.24 per liter on Wednesday evening at 20:44. At 00:53 on Thursday, the state-run producer corrected its stance, explaining that distributors will instead see a net reduction of R$ 0.19 per liter when including taxes, setting the average selling price for gasoline A at R$ 3.05 per liter starting 10 September.

The price shift follows changes in federal fuel policies aimed at buffering higher global oil prices. The federal government allowed an economic subsidy of R$ 0.44 per liter under Provisional Measure 1,358/2026 to expire on Wednesday. At the same time, the administration introduced a tax relief of R$ 0.63 per liter on PIS/Pasep and Cofins taxes. In addition, federal authorities eliminated taxes on ethanol, with both tax measures remaining in effect for one month from 10 September to 9 October.

Petrobras stated it is also awaiting the necessary official acts to adjust diesel fuel prices. President Luiz Inácio Lula da Silva signed a provisional measure granting a new subsidy of R$ 1 per liter of diesel, which combines with an existing subsidy of R$ 1.12 per liter that runs through 26 September. During the overlap, total diesel subsidies will reach R$ 2.12 per liter before the government reassesses the program at month-end.

According to the National Petroleum Agency (ANP), pump prices have moved significantly since the conflict between the United States and Iran began on 28 February. Pump prices for S10 diesel rose 13% to an average of R$ 6.88 per liter last week, while gasoline rose 3.6% to reach R$ 6.51 per liter in early September. In contrast, pump prices for ethanol fell 14.7% since late February to an average of R$ 3.95 per liter last week, representing about 60% of the price of regular gasoline.