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Thursday, Aug 22
Rousseff's office denies Brazil is in talks to raise fuel prices
- A spokesman for Brazilian president Rousseff denies the government is considering raising domestic fuel prices to help Petrobras (PBR +3.4%) after the currency suffered steep losses against the U.S. dollar this week.
- PBR is selling gasoline and diesel at a ~30% discount to international benchmark prices, with the government reluctant to authorize higher prices for fear of stoking inflation.
- The problems have been exacerbated by the real's slide vs. the dollar, losing ~8% in August and more than 20% YTD.