Brazil finance minister alerts Petrobras will minimize gas costs once more in July

Brazil finance minister alerts Petrobras will minimize gas costs once more in July

BRASILIA, Could 17 (Reuters) – Brazil Finance Minister Fernando Haddad indicated on Wednesday that state-run oil firm Petrobras (PETR4.SA) will as soon as once more scale back gasoline costs in July when a tax on oil exports expires.

Talking at a listening to within the Decrease Home, Haddad mentioned: “We didn’t decrease costs as a lot as we may exactly as a result of we’re ready for July 1st, when the export tax ends and the tax resumption cycle (on fuels) ends.”

Petrobras didn’t instantly reply to a request for remark.

Haddad’s remarks come after Petrobras introduced an almost 13% lower in gasoline and diesel costs on Tuesday, following the introduction of a brand new pricing coverage that scraps a so-called gas import parity that extra intently aligned costs on the pump with the oil market and change charges.

President Luiz Inacio Lula da Silva’s authorities partially reinstated federal taxes on gasoline and ethanol in March after a broad exemption initiated final yr by former President Jair Bolsonaro, who diminished costs forward of the election he narrowly misplaced to Lula.

To make sure the identical income that might be obtained with a full reinstatement, the federal government additionally imposed a tax on exported crude oil for 4 months, ending in June.

Haddad had beforehand mentioned that after this era, the taxation on oil exports would finish, and gas taxes can be absolutely resumed.

The federal government maintained the tax exemption on diesel till the top of the yr, however Haddad additionally burdened on Wednesday that the identical technique can be employed by Petrobras with the product, aiming to keep away from impacting shopper costs.

“It’s going to occur with diesel on the finish of the yr. We’ve got already left some room to accommodate the (tax) resumption,” he mentioned.

Reporting by Marcela Ayres
Modifying by Invoice Berkrot

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