MOSCOW (MRC) -- Brazilian state-controlled oil company Petroleo Brasileiro SA increased diesel prices at refineries by 6.1% on average with immediate effect, citing higher oil prices and a stronger real currency, said Reuters.
According to a Thursday statement, the decision also stemmed from stronger seasonal demand for diesel as winter peaked in the northern hemisphere.
For years, Petrobras kept fuel prices artificially low in order to avoid pressuring inflation, absorbing sharp losses whenever prices of crude rose in global markets.
Under Chief Executive Officer Pedro Parente, Petrobras adopted a more flexible pricing policy, taking into consideration the exchange rate, the company's market share and other factors, to set wholesale fuel prices at its refineries.
It will continue revising fuel prices at least once every 30 days, Petrobras said.
If fuel distributors, gas stations and other intermediaries choose to fully transfer the price increase to consumers, that would translate into a 3.8% price hike at pumps, according to the statement.
As MRC informed earlier, Petrobras agreed to sell its 49% stake in the sugar and ethanol joint venture Nova Fronteira Bioenergia SA to partner Sao Martinho SA.
Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC