Petrobras (PBR) Cuts Diesel Prices as Brazil Subsidy Eases Tax Impact

Petrobras (PBR) will lower its average diesel A price to distributors to R$3.30 per liter from R$3.65, effective June 1, 2026, incorporating a federal subsidy of R$0.3515 per liter. The move aims to fully offset the reimposition of PIS and Cofins taxes on diesel, shielding consumers from higher costs. The state-controlled oil company said the new price is 37.4% below its end-2022 level after adjusting for inflation, reflecting its strategy to contain pass-through of global crude volatility. Brazil’s government separately authorized a broader R$1.12 per liter subsidy for diesel producers and importers; Petrobras is still evaluating that program. The intervention underscores Brasília’s intensified fuel market management to curb inflationary pressure and stabilize supply in a sector vital to freight and agriculture.