- Petrobras (PBR) says it has adopted a pricing strategy that will eliminate costly fuel subsidies but won't reveal how the policy works.
- An 8% price increase for diesel and a 4% hike for gasoline aim to “make prices in Brazil converge with the international benchmarks, within a compatible period,” PBR says as it also seeks to “assure that debt and leverage rates return within 24 months to the limits established by the 2013-17 business plan.”
- While investors likely will welcome the news, it falls short of the transparency they've sought; PBR says that because of "commercial reasons," its board recommended the methodology for calculating prices be kept secret.
Petrobras raises diesel price 8% in attempt to lower leverage
Nov 29 2013, 17:55 ET