Brazil's Petrobras to lower gasoline prices starting Friday

A logo of Brazil's state-run Petrobras oil company is seen at its headquarters in Rio de Janeiro
A logo of Brazil's state-run Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes//File Photo

SAO PAULO, Sept 1 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) said on Thursday it will cut refinery gate gasoline prices by 7% starting Friday, taking them to their lowest level since March.

According to a statement on Petroleo Brasileiro SA's website, gasoline prices will drop to 3.28 reais ($0.6317) per liter on average, from the current 3.53 reais.

The move marks the fourth consecutive gasoline price reduction since mid-July. Diesel costs were kept at their current levels, set in mid-August.

The company, which pegs local fuel prices to international rates, including foreign exchange and global crude prices, said the move "tracks benchmark prices and is in line with Petrobras' pricing policies".

Lower fuel prices are seen as key for President Jair Bolsonaro's re-election prospects as Brazil grapples with high inflation. The far-right leader currently trails former leftist President Luiz Inacio Lula da Silva in opinion polls ahead of the Oct. 2 vote.

Bolsonaro praised the price cut on Twitter just minutes after Petrobras' statement. He had already said on Wednesday he was expecting the company to announce "good news on fuel prices" by Friday.

($1 = 5.1927 reais)

Reporting by Gabriel Araujo; Editing by Steven Grattan

Our Standards: The Thomson Reuters Trust Principles.

Read Next