Petrobras to Cut Industrial LPG Prices by 8.8%
Brazil's federal oil giant Petroleo Brasileiro (Petrobras) said it will cut the price of liquefied petroleum gas (LPG) for industrial and commercial use by 8.8% from Tuesday.
The cut is in line with the trend in international LPG prices, a Petrobras spokesperson told BNamericas. In October last year, Petrobras, the oil regulator ANP and LPG distributors reached an agreement whereby Petrobras would make up any shortfalls in domestic supplies by importing LPG itself and passing on the full cost to the distributors. International LPG prices have fallen this month leading Petrobras to cut the price, the spokesperson explained.
Earlier in the day, Petrobras had unveiled a 15.4% cut in aviation kerosene prices. Both price reductions will take effect on Tuesday. Petrobras and the federal government have been criticized recently for not passing on the full international prices for other oil derivatives such as gasoline and diesel. The company has missed out on an opportunity to reap a windfall profit that would boost its cash reserves, but the government, it seems, preferred to sacrifice these profits as part of its battle against inflation.
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