Brazil's Petrobras to announce end of import parity policy Tuesday, CNN Brasil reports - Reuters.com

Brazil's Petrobras to announce end of import parity policy Tuesday, CNN Brasil reports | Reuters

Brazil's Petrobras to announce end of import parity policy Tuesday, CNN Brasil reports

May 15 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) is set to announce the end of its import parity policy for gasoline and diesel, CNN Brasil reported on Monday citing two sources close to the matter.

According to CNN Brasil, the firm will announce on Tuesday the end of the import parity policy, known as PPI, to be replaced by another policy that takes into account international prices as a reference, but also local production costs and refining margins in each region of the country.

Petrobras said in a statement on Sunday it was "internally discussing making changes to its pricing policy for diesel and gasoline, which will be analyzed by executive management early this week and might result in a new commercial strategy."

President Luiz Inacio Lula da Silva, who was elected last year, pledged to change the firm's current policy of pegging local prices to international rates, such as global oil prices and foreign exchange, in a bid to make fuel cheaper.

The company did not immediately respond to a request for comment.

Earlier on Monday, the company said it had made no decision on a potential increase in its stake in petrochemical firm Braskem (BRKM5.SA), after media reported it was mulling buying out its partner Novonor.

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