If Oil Stays Down, Petrobras May Lower Gas Prices

The director of Supply and Refining for Petrobras (PBR), Paulo Roberto Costa, said in a statement that the company may reduce the price of petrol and diesel if the price of oil remains at the current level for a longer period of time.

The company, however, believes that the price of a barrel of oil is subject to great volatility and does not think that now is the time to adjust fuel prices.

Costa said:

If the price of oil stays around $30USD, obviously we will reassess our position. Once Petrobras feels that the price of a barel of oil is stable, the price of fuel will be able to be adjusted.

Current exchange rates are also taken into account when estimating the cost of fuel and, according to Costa, this factor will be taken into consideration by Petrobras also.

He also reiterated that the state evaluates the price of a barrel of oil in the long term to decide on possible adjustments in domestic prices. Costa noted that Petrobras adopted this policy when the price of a barrel shot up to around $140USD in July of last year.

Comments

[ROLEX18K:]

Petrobras same like any other Oil/Gas company is not excluded from stock market crash, when global economy slows day by day, there is not a single asset that is excluded from it.
The question is not that Petrobras will lower the price, the qestion is for Petrobras and Brazil government- how to dump oil at any price and close budget holes, unemployment,crime in Brazil.
Any company that pumps Oil/Gas have no other business, it can not stop pumping as it will go bankrupt.Same was in the 1990's when OPEC and other producers competed who can sell Oil cheaper, I remember what pressure Asian crisis made to Oil companies, now it is much worse.
Today we are in the " who sells Oil cheaper" environment.
Expect Oil at 10-20 for the next 2-3 years.

Jan 22 05:14 AM

[BobbyBahiaB...:]

Just got back from Brazil last week. Gas is at 5 dollars a gallon. PBR is a corrupt price fixing monopoly. PBR claims they have to charge market rates as they export heavy oil then buy light oil abroad at market rates. In the end you have a state owned company that refuses to pay a significant dividend to shareholders and rapes the people of Brazil with expensive gas. Here in California you can get unleaded for 2 bucks a gallon. It would be cheaper for Brazil to buy oil from Venezuela, bring it in with tankers, pay for the oil with reais, then Venezuela could buy Brazilian products such as autos, grain, beef, steel, creating jobs for Brazilians and lowering transportation costs. But that would be too easy. PBR insists on spending over a hundred billion dollars on a risky expensive offshore quest for oil.

Jan 28 05:16 AM