Elizabeth Johnson

Managing Director, Brazil Research

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Brazil: International fuel price parity is easier said than done

Overview

Following steep losses in its downstream division owing mainly to record diesel consumption in Brazil, Petrobras has submitted a pricing formula to its board of directors that aims to bring the company closer to international price parity in gasoline and diesel. But in the light of a stubbornly high rate of inflation, we believe it is quite unlikely that the government will approve an abrupt move in fuel pricing, certainly not before President Dilma’s re-election bid in October...

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