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Marcus D'Elia explains to CNN what to expect from Petrobras' parity policy

In an interview with CNN Brasil about Petrobras' new pricing policy, Marcus D´Elia explained the measure's impact on consumer fuel prices. One of the questions raised is how the state-owned company will behave if the price of a barrel of oil varies a lot.

As the president of Petrobras declared that the lower price limit will be the margin of the state-owned company, the partner at LEGGIO Consultoria explains that the company's ability to absorb price fluctuations is low, since the refining margin in Brazilian refineries is between 3% and 10%.

In addition, the cost of Petrobras influences only a part of the price of fuel to the consumer. As Brazil depends on imports to fill the gap between domestic demand and supply, the final price of diesel and gasoline will be a weighted average between the cost of the state-owned company and that of the imported product.


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