Brazil's Petrobras board approves joining diesel subsidy program

SAO PAULO, Sept ‌19 (Reuters) - Brazilian ​state-run ​oil firm Petrobras said on Saturday that its board approved the company's participation ‌in a new government subsidy program for diesel ⁠oil producers, worth 1.00 real ($0.19) per liter for ‌30 days.

• The diesel ‌subsidy can be extended for another 30 days and is cumulative with an existing ​subsidy of 1.12 reais per liter.

• Earlier this week, Petrobras announced an increase in diesel ⁠prices to distributors by an average of 1 real per ​liter, while also giving a discount of the same amount.

• As a result, ​Petrobras' prices to distributors remain ‌unchanged while the company benefits from the subsidy.

• Petrobras said in a ⁠separate statement it received 448 million reais in payments from a gasoline subsidy program, linked to sales ⁠between July 16-31.

• Total accumulated subsidies for diesel, gasoline ​and LPG programs reached 9.9 billion reais, it said.

• Since the start of the war in Iran, ‌Brazilian President Luiz Inacio Lula da Silva has sought to cushion the effects ‌of higher oil prices ahead of October's ⁠presidential election, in which ‌he is ​seeking a fourth non-consecutive term.

($1 = 5.1445 reais)

(Reporting by Isabel Teles; Editing by Paul ‌Simao)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Exclusive-Snorkel AI valued at $3.5 billion amid surging demand for complex AI training data
• Data center firm Accelevation targets up to $5.4 billion valuation in US IPO
• Goldman appoints Simon Lyons UK investment banking co-head