Brazil's Petrobras Raises Gasoline Prices for the First Time in Almost a Year

In a move that could impact inflation, Brazil's state-run oil giant Petrobras (NYSE: PBR) announced its first gasoline price increase in nearly a year. The price hike comes amid rising global oil prices.

Details of the Increase

The price of gasoline will increase by 0.20 reais ($0.0366) per liter, bringing the average price to 3.01 reais/liter. Liquefied Petroleum Gas (LPG), commonly used for cooking and heating, will also see a price increase of 3.10 reais, reaching 34.70 reais per 13-kg cylinder.

Impact on Inflation

Analysts predict this price hike could push Brazil's 2024 inflation rate up by 18 basis points. This could put additional pressure on households already facing rising costs.

Petrobras' Pricing Policy

In 2023, Petrobras abandoned a more market-based pricing policy in favor of one that allowed for more flexibility in managing price fluctuations. This latest increase reflects the rising global oil prices that Petrobras is no longer fully absorbing.

Uncertainties for Consumers

It remains unclear if this is a one-time adjustment or the beginning of a trend towards more frequent price hikes. This uncertainty could impact consumer spending habits.

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