- Petrobras (PBR -3.8%) will keep its fuel prices stable rather than cutting them to reduce the tax impact on consumers, UBS analyst Lilyanna Yang writes as she reiterates a Neutral rating on the ordinary shares following yesterday's announcement by Brazil Finance Minister Joaquin Levy that the country will raise revenue through two gasoline taxes starting in February.
- "The fact that Petrobras is not cutting prices to make up for higher taxes is a sign that things are different," and will help boost investors’ confidence in the government’s efforts to balance Brazil's budget, says a partner at Brazilian hedge fund Teorica Investimentos.
- Meanwhile, three workers were seriously hurt in an explosion Sunday at the company's 323K bbl/day Landulpho Alves Refinery, the second serious accident at Brazil's second-largest refinery in a week; PBR has not said if oil processing or fuel output at the refinery has been affected by the accident, but does say it will not affect fuel supplies to Brazilian consumers.