Brazil’s Petrobras made no decision on fuel price adjustment – CEO

RIO DE JANEIRO, March 2 (Reuters) – Brazil’s state-owned oil company Petrobras has not made a decision on fuel price adjustments, its chief executive Joaquim Silva e Luna told Reuters on Wednesday.

He said that after Russia invaded Ukraine, the oil market was “nervous” and full of doubts.

“The world has plunged into a scenario of uncertainty,” Luna told Reuters.

“That’s what we’re looking at,” he added when asked how long Petrobras would support higher Brent prices, without adjusting domestic oil derivatives prices.

The surge in oil prices this year has been partially offset in Brazil by the devaluation of the dollar against the real. Forex and Brent prices are the two main variables in the company’s pricing policy, known as PPI.

The CEO of Petrobras recalled that the public group that evaluates the price parity policy analyzes the scenario “minute by minute” before making any decision.

One of the characteristics of Luna’s management is not to pass on cyclical movements in the oil market to domestic prices, and price adjustments are favored by structural changes in the scenario. (Reporting by Rodrigo Viga Gaier; Writing by Peter Frontini; Editing by David Gregorio)

Eleanor C. William