Petrobras pauses fuel adjustments as diesel subsidy holds

Petrobras CEO Magda Chambriard avoided signaling new diesel price increases at refineries on 24 September 2026. Her comments followed an announcement by Minister of Planning and Budget Bruno Moretti that the Brazilian federal government will extend its fuel subsidy of R$ 2.12 per liter for another 30 days.

The total subsidy combines a previous R$ 1.12 per liter measure that was set to expire on Saturday with a newer R$ 1.00 per liter discount introduced last week. The government has used fuel subsidies since March to counter the economic fallout from the war involving the United States, Israel, and Iran. Last week, Petrobras raised its refinery diesel prices by R$ 1.00 per liter upon joining the latest discount program.

Speaking at the ROG.e conference in Rio de Janeiro, Chambriard noted that the company was comfortable with the subsidy level when Brent crude traded lower, but less so when it hit $108 per barrel. With Brent falling back below $100, she emphasized that Petrobras reviews market parity every 15 days rather than adjusting daily, warning that daily reactions would risk losing domestic market share.

Brazil currently imports about 30% of its diesel consumption, while Petrobras supplies roughly 70%. Addressing supply concerns, Chambriard stated that the company's diesel imports for October are fully contracted. According to the fuel importers association Abicom, about 80% of Brazilian diesel imports come from the United States and 15% from India, though Chambriard noted Petrobras could increase purchases from Indian refiners if US export curbs arise.