Brazil's Petrobras board approves joining diesel subsidy program

By Reuters News

SAO PAULO, Sept 19 (Reuters) - Brazilian state-run oil firm Petrobras said on Saturday that its board approved the company's participation in a new government subsidy program for diesel oil producers, worth 1.00 real ($0.19) per liter for 30 days.

  • The diesel subsidy can be extended for another 30 days and is cumulative with an existing subsidy of 1.12 reais per liter.

  • Earlier this week, Petrobras announced an increase in diesel prices to distributors by an average of 1 real per liter, while also giving a discount of the same amount.

  • As a result, Petrobras' prices to distributors remain unchanged while the company benefits from the subsidy.

  • Petrobras said in a separate statement it received 448 million reais in payments from a gasoline subsidy program, linked to sales between July 16-31.

  • Total accumulated subsidies for diesel, gasoline and LPG programs reached 9.9 billion reais, it said.

  • Since the start of the war in Iran, Brazilian President Luiz Inacio Lula da Silva has sought to cushion the effects of higher oil prices ahead of October's presidential election, in which he is seeking a fourth non-consecutive term.

($1 = 5.1445 reais)

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