Tuesday, July 5

Brazil’s Petrobras to announce fuel price increase on Friday -media report

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Brazilian state-run oil company Petrobras is set to announce a fuel price increase on Friday, local media reported on Thursday.

According to O Globo, the company’s board has approved diesel and gasoline price increases that will come into effect next week.

Petrobras said it could not “preemptively discuss decisions on price preservation or price adjustments due to competition issues.”

During his weekly live address to the nation on Thursday, Brazil’s President Jair Bolsonaro, seeking to tackle high inflation in the country, said he hoped Petrobras would not increase prices.

Reuters reported earlier this week that the company would postpone prices hikes until the fuel tax cut bill had been finalized by Brazil’s congress, which approved it on Wednesday and is now awaiting presidential sanction.

Both houses approved the bill, which caps state taxes on fuels and other items, aimed at reducing prices for consumers.

Sources close to the matter told Reuters the lower tax burden should make any price hikes “less traumatic.” (Reporting by Carolina Pulice Editing by Chris Reese and Lincoln Feast.)


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