Petrobras fuel price gap hits record despite subsidy

A new fuel subsidy announced on 9 September falls short of closing the record gap between Petrobras prices and US imports. The government introduced an additional subsidy of R$ 1 per liter of diesel, adding to the existing R$ 1.12 per liter measure.

According to data from StoneX, Petrobras diesel trades R$ 3.32 per liter below imported diesel without the new subsidy. This represents a 102.1% gap and sets a record, surpassing the prior high of R$ 3.16 reached in April under the initial effects of the Middle East conflict that began on 28 February.

For gasoline, a new decree increases the subsidy from R$ 0.44 per liter to R$ 0.63 per liter, alongside a R$ 0.19 reduction per liter of ethanol blended into gasoline. Petrobras gasoline prices remain R$ 1.22 per liter below imports, representing a 47.6% discount, though Brazil does not rely on gasoline imports to meet domestic demand.

Brasilcom, the national federation of fuel distributors, stated that the measures do not change the current outlook because the subsidy does not cover the severe price lag. The group added that pass-through to retail pumps depends entirely on the commercial strategy and logistics of each distributor.