Petrobras announced a gasoline price reduction of 0.19 Brazilian real ($0.0372) per liter on Thursday.
The decision follows new tax measures implemented by the Brazilian government.
This move reverses a previous announcement from the state-run oil company that indicated a price increase.
Federal tax reductions on gasoline imports and sales now total 0.63 real per liter.
This tax cut offsets the elimination of a prior 0.44 real per liter discount.
The adjustment lowers the gasoline price charged to distributors at company refineries.