Petrobras walks back gasoline price hike, says tax cuts will lower pump prices (updated)

Petroleo Brasileiro SA Petrobras

10/09/2026 12:53

Updates with Petrobras' corrected statement
SAO PAULO, Sept 9 (Reuters) - Brazilian state-run oil firm Petrobras PETR3.SA said on Thursday that a package of government tax measures will result in a 0.19 real ($0.0372) reduction per liter in gasoline prices for consumers, reversing an earlier announcement that had implied a raise in prices to distributors.
Petrobras initially said late on Wednesday it would scrap a 0.44 real-per-liter discount while also effectively raising prices, leaving the price to distributors at 3.24 reais per liter.
But the company issued a correction early on Thursday to clarify that a fresh government measure would actually lower the price of gasoline to distributors at its refineries.
The government said on Wednesday it would cut federal taxes on gasoline imports and sales by 0.63 real per liter, replacing and expanding a previous cash subsidy of 0.44 real per liter.
Petrobras said the tax reduction more than offsets the end of the discount, resulting in a lower final gasoline price.
"For distributors, the effect will be a reduction of 0.19 real in the perceived price with taxes," Petrobras said.
The gasoline price cut comes as President Luiz Inacio Lula da Silva seeks a fourth non-consecutive term in an election with first-round voting scheduled for October 4.
The government also announced a diesel subsidy initially set at 1 real per liter, to be added to an existing subsidy.
Petrobras said it will wait for the government to publish the legal acts regulating the new diesel subsidy before assessing and implementing it.
($1 = 5.1102 reais)

 (Reporting by Andre Romani, Rodrigo Viga Gaier and Fabio Teixeira; Editing by Natalia Siniawski, Gabriel Araujo and Tomasz Janowski)
 ((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))