Petrobras Eyes Adjustments In Fuel Pricing To Fight Importers
RIO DE JANEIRO, Dec 8 (Reuters) - Brazil's state-controlled oil company Petrobras could make more adjustments to its fuel pricing policy as a way to better fight fuel importers for market share, its executive manager for fuel sales said on Friday.
Guilherme Franca told Reuters in an interview that the company remains committed to its fuel pricing policy of closely following international price moves, but he added the company will continue to adjust the parameters used to calculate the international parity price.
Petroleo Brasileiro SA started to follow international oil prices in October 2016, but in June changed the frequency of its price changes to an almost daily basis as a way to better face competition from importers.
The company, which controls almost 100 percent of refining in Brazil, has lost market share on fuel sales, something that is hurting its results.
"We are learning every day new ways to operate under these new dynamics. Everybody is seeking alternatives to maximize results," he said.
Last week, Petrobras changed its parity calculation for diesel, saying importers had managed to cut costs with some logistics changes that were not being accounted for by Petrobras when it defines the price at which it sells diesel. With the change, Petrobras cut diesel prices at the refinery by 5.7 percent.
The company has also seen a surge in ethanol demand recently, due to lower prices for the biofuel compared to gasoline, which increased in price this year after a tax hike by the government and higher oil prices.
Brazilian diesel imports jumped 61 percent in 2017 through October. Petrobras diesel sales fell 10 percent in the third quarter, reducing its market share to 72 percent.
(Writing by Marcelo Teixeira Editing by Marguerita Choy)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension