Petrobras raises diesel price, offsets increase with new Brazil subsidy (updated)
UPDATE 1-Petrobras raises diesel price, offsets increase with new Brazil subsidy Adds new details from the statement in paragraph 3, context in paragraph 4
SÃO PAULO, Sept 16 (Reuters) - Brazilian state-run oil firm Petrobras PETR4.SA said on Wednesday it will hike diesel prices to distributors by an average of 1 real ($0.1941) per liter as of Thursday, while also giving a discount of the same amount.
As a result of the moves, which followed the company's decision to enroll in a new government diesel subsidy program, Petrobras' prices to distributors will remain unchanged while the company benefits from the subsidy, according to a statement.
Petrobras said joining the new government subsidy program, which is also of 1 real per liter, is a move compatible with the firm's interest in preserving flexibility on implementing commercial strategy.
Reuters reported last week, citing sources, that Petrobras was looking to raise diesel prices by about 1 real per liter, but was waiting for government measures to shield consumers from the increase.
($1 = 5.1523 reais)
(Reporting by Andre Romani; Editing by Isabel Teles and Iñigo Alexander)
((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))
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