Petrobras cut gasoline prices below import parity to regain market | Reuters

RIO DE JANEIRO (Reuters) – Brazilian state-controlled oil firm Petróleo Brasileiro SA has reduced prices for the gasoline it sells in Brazil to below parity with the fuel imported from the United States, reducing profit margins to regain market share.

Petrobras, as the company is commonly known, has sharply reduced the price gap between the value of gasoline sold at its refineries and the spot price in the U.S. Gulf of Mexico since early July, when it announced changes to its pricing to adopt almost daily adjustments, according to fuel market experts.

A report from consultancy Tendências shows Petrobras’ gasoline prices in Brazil since the adoption of the new strategy varied from 0.05 real per liter above the spot Gulf price to up to 0.03 real below that reference.

That compares to prices before the new policy of 0.21 real on average above spot Gulf gasoline.

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Petrobras cut gasoline prices below import parity to regain market.