Brazil & Southern Cone - February 2025

BRAZIL| Petrobras raises diesel prices. State-controlled oil giant Petrobras announced on 31 January a 6.3% hike in the price of diesel sold in its refineries. The hike, effective from 1 February, raises the price of diesel by R$0.22 to R$3.72 (US$0.65) per litre. This is the first time that Petrobras has raised diesel prices since October 2023 – it cut them in December 2023 – and the company says they remain 17.1%, or R$0.77 per litre (24.5% or R$1.20 when adjusted for inflation), below December 2022 prices, just before President Luiz Inácio Lula da Silva took office. The Lula government is currently battling rising inflation which would be impacted by an increase in fuel prices, but industry representatives such as the national fuel importers association (Abicom) had been warning that the average price of Petrobras diesel was far below the international parity price. Even after the hike, the price gap remained at 9%, Abicom said.     

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