By Marta Nogueira
RIO DE JANEIRO (Reuters) -Brazil’s mines and energy minister has asked Petrobras’ chief executive to have the state-run oil firm consider a new cut in the average price of diesel sold to distributors in Brazil, a source with knowledge of the matter told Reuters on Monday.
Minister Alexandre Silveira cited the recent drop in oil prices and the stability of the dollar as conditions that would allow the price cut to Petrobras’ Chief Executive Magda Chambriard, the source said, adding that the talks happened last week. Silveira’s request was previously reported by CNN Brasil.
The request comes as oil prices slide due to U.S. President Donald Trump’s push for tariffs that could lead economies around the world into recession, reducing the global demand for energy.
Trump’s April 2 announcement of global tariffs came just one day after Petrobras cut the price of diesel at refineries by 4.6% or R$0.17 per liter, the first reduction for the fossil fuel since 2023.
State-run Petrobras is often under pressure by Brazil’s President Luiz Inacio Lula da Silva’s government to reduce fuel prices to distributors, in a bid to lower cost of living to Brazilians and help with Lula’s popularity.
Petrobras’ recent diesel prices have stood above import parity and were 5% above it on Friday, according to Abicom, a fuel imports association.
(Reporting by Marta Nogueira; Editing by Aida Pelaez-Fernandez and Oliver Griffin)
