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Petrobras raises wholesale LPG prices by 6pc

  • Market: LPG
  • 06/07/21

Petrobras raised wholesale LPG prices by an average of 5.9pc, effective today.

The price of LPG sold by Petrobras to distributors will come to an average R3.60/kg (70¢/kg), up by R0.20/kg, in all regions of the country.

The company is counting on its new pricing policy to help track international oil price variations to Petrobras' products.

The wholesale price is used to calculate the final price of 13kg canisters of LPG that many Brazilians use for cooking.

"The prices charged by Petrobras continue to seek balance with the international market and track variations in the value of products and the foreign exchange rate," the company said.

The prior price increase announced by Petrobras was to R3.40/kg fromR3.21/kg on 11 June. Since March, the wholesale LPG price is up by 18pc.

Petrobras' LPG prices are starting to closely track rising international crude values as Brazil's state-controlled company seeks to attract imports of the fuel as well as investment in its refining assets.

Petrobras' LPG prices for distributors rose by 83pc in the 12 months through mid-May, similar to Brent prices which rose by 90pc in that same period.

This is the first price increase announced by Petrobras under the management of its new chief executive Joaquim Silva e Luna.


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