Petrobras’s board approved participation in a new Brazilian government subsidy program for diesel producers. The program provides a subsidy of one real (~$0.19) per liter for an initial 30-day period. This initiative includes a possible 30-day extension to stabilize domestic supply amid geopolitical disruptions.
The new subsidy operates alongside pre-existing programs to further insulate the company from international price volatility. Petrobras’s cumulative receipts from various government fuel-support measures have reached approximately R$9.9 billion ($1.9 billion).
The company recently raised diesel prices by one real per liter while simultaneously offering an equivalent discount. This maneuver keeps prices stable for distributors while allowing Petrobras to capture the government subsidy.