Bloomberg Markets story, by Milana Vinn and Lucia Kassai, reports that Brazil fuel imports are set to fall from a record as the country’s state-owned oil company lowers prices in a bid to regain market share.
“Petroleo Brasileiro SA, which owns 13 out of the 16 refineries in the country, cut diesel prices by 47 percent and gasoline by 38 percent at the refinery gate since January. As a result diesel imported from the U.S. and gasoline from Europe arrives at higher prices than the locally-produced fuels.
Diesel imports have slowed to a trickle, because most would arrive at a loss of as much as $20 per cubic meter (approximately $3 per barrel), compared with profits as high as $600 per cubic meter in 2016, according to people with knowledge of the situation. Brazil’s imports of gasoline and diesel rose to a record last year as Petrobras refineries processed the least crude in 13 years, according to Bloomberg calculations with the country’s oil regulator data.
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