LatAmOil: Petrobras eliminates import parity pricing for domestic fuel sales

Brazil’s national oil company (NOC) Petrobras has replaced its existing domestic pricing policy for gasoline and diesel, known as import parity, with a new commercial strategy.

The announcement triggered an immediate 5% rise in the company’s share prices, even though Petrobras did not reveal any specific details about its new strategy. Thus far the company has only divulged a few details, such as its plans to incorporate references such as the cost of main supply alternatives when setting new prices. It has also said it will consider what it calls the “marginal value for Petrobras,” or the opportunity cost in light of production, import and export alternatives.

Petrobras claims that the new strategy is already bringing domestic fuel prices down. As of mid-May, it said, gasoline prices had already dropped by an average of 12.6%, while diesel and LPG prices were on track to decline by 12.8% and 21.3% respectively.