Petrobras Raised Petrol Prices and Drivers Paid Less

BRAZIL · FUEL PRICES

Brazilian drivers paid 19 centavos less a litre this week. Petrobras had just put its price up.

Petrobras raised its refinery price while a federal tax cut lowered what drivers pay.

Petrobras announced an increase of R$0.63 a litre, about US$0.12, for gasoline A on 9 September. It restated the figure overnight at R$0.44, roughly US$0.08. A simultaneous federal tax cut of the same R$0.63 left pump prices about 19 centavos lower, some US$0.04.

What Petrobras Announced and Then Corrected

The first announcement, on 9 September, put the increase at R$0.63 a litre, about US$0.12.

It was corrected overnight to R$0.44, about US$0.08. The difference was the end of a discount Petrobras had been applying.

The final refinery price for gasoline A is R$3.05 a litre, roughly US$0.57.

Gasoline A is the pure product that leaves the refinery. What reaches a Brazilian pump is gasoline C, a blend with ethanol.

Where the 19 Centavos Came From

Decreto 13.116/2026 reduced the federal PIS/Cofins contribution on petrol by R$0.63 a litre, roughly US$0.12. It took effect at the same time.

Petrobras raised its own price by R$0.44, some US$0.08. The tax fell by R$0.63, about US$0.12.

The net effect at the pump is a reduction of about R$0.19 a litre, roughly US$0.04.

The saving is a tax decision by the federal government, not a price decision by Petrobras.

What Petroleo Brasileiro Petrobras does. Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil, China, the United States, the Americas, Asia, Europe, Singapore, and internationally. It operates through three segments: Exploration and Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies. The Exploration and Production segment explores, develops, and produces…

Why the Two Moved Together

Petrobras prices against international benchmarks, and Brent crude reached US$109.44 this week after a Saudi pipeline suspension.

A refinery price that ignores an international move for long leaves Petrobras selling below cost. That happened under previous administrations and cost the company billions.

A pump price that rises in an election year is a political problem.

Cutting the tax at the moment the refinery price rises resolves both, at the cost of federal revenue.

What It Costs the Treasury

Brazil consumes roughly 45 billion litres of petrol a year.

A reduction of R$0.63 a litre, about US$0.12, across that volume is a substantial annual revenue loss. The decree determines the duration.

PIS/Cofins is a federal contribution that funds social security and social programmes.

The 2027 budget process will have to account for whatever the decree costs.

The refinery price is roughly a third of what a Brazilian driver pays.

What Drivers Actually See

Pump prices in Brazil vary by state because ICMS, the state value-added tax, differs across the federation.

The refinery price is roughly a third of what a driver pays. Taxes, distribution, ethanol blending and retail margin make up the rest.

Changes at the refinery gate take one to two weeks to reach pumps, and stations with existing stock move slower.

Ethanol competes directly with petrol in Brazil, and at a price ratio above 70% most drivers of flex-fuel cars switch to petrol.

Fuel prices have decided Brazilian political arguments before.

The Political Frame

Fuel prices have decided Brazilian political arguments before. A 2018 truckers’ strike over diesel prices paralysed the country for eleven days.

The current pricing policy replaced the strict import-parity rule that made Petrobras pass every international move straight through.

Under the present approach, Petrobras smooths, and the federal government uses tax to manage the remainder.

That works while the treasury can afford it.

What to Watch

Whether Brent holds above US$105. The Saudi pipeline suspension is the variable.

The duration of the PIS/Cofins reduction, which the decree sets.

Ethanol prices during the inter-harvest period, which begins in December.

And the next Petrobras announcement. It will show whether the R$0.44 increase, some US$0.08, closed the gap to international prices.

More: Brazil news, every day from The Rio Times.

Frequently Asked Questions

Did Petrobras cut petrol prices?

No. It raised its refinery price by R$0.44 a litre, about US$0.08. A federal tax cut of R$0.63, some US$0.12, more than offset it.

Why did pump prices fall 19 centavos?

Decreto 13.116/2026 cut the PIS/Cofins levy by R$0.63 a litre, about US$0.12. Petrobras raised its price by R$0.44, some US$0.08.

What is the new refinery price?

R$3.05 a litre for gasoline A, roughly US$0.57.

What is gasoline A?

The pure product leaving the refinery. Brazilian pumps sell gasoline C, which is blended with ethanol.

Why did Petrobras correct its announcement?

The first figure of R$0.63, about US$0.12, included a discount that was ending. The actual increase is R$0.44, some US$0.08.

When do drivers see the change?

Usually one to two weeks, depending on station stock and the state ICMS rate.

Sources: Petrobras, Diário Oficial da União (Decreto 13.116/2026), ANP, Reuters, Valor Econômico.