Rio de Janeiro (Platts)--10Dec2012/617 pm EST/2317 GMT
Petrobras Supply Director Jose Carlos Cosenza said Monday that price parity on product imports was one of four "suppositions" for the financing of the company's $236 billion 2012-2016 business plan. Maintaining investments, the non-issue of shares and disinvestment of foreign assets were the other suppositions for the company to finance its business plan, Cosenza said at an event in Sao Paulo, in comments released by Petrobras. Petrobras loses money on gasoline and diesel imports because it imports at high international prices but sells domestically at lower prices fixed by the government to control inflation. The government has made price adjustments this year, but Petrobras want more; gasoline prices increased by 7.8% June; diesel went up 3.9% in June, and another 6% a month later. Article continues below... Request a free trial of: Oilgram News Oilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Petrobras Supply Director Jose Carlos Cosenza said Monday that price parity on product imports was one of four "suppositions" for the financing of the company's $236 billion 2012-2016 business plan. Maintaining investments, the non-issue of shares and disinvestment of foreign assets were the other suppositions for the company to finance its business plan, Cosenza said at an event in Sao Paulo, in comments released by Petrobras. Petrobras loses money on gasoline and diesel imports because it imports at high international prices but sells domestically at lower prices fixed by the government to control inflation. The government has made price adjustments this year, but Petrobras want more; gasoline prices increased by 7.8% June; diesel went up 3.9% in June, and another 6% a month later.
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According to Rio de Janeiro consultancy the Brazilian Infrastructure Center (CBIE), on November 14 the domestic price of diesel was 23.4% below US Gulf Coast prices. On the same day, gasoline was selling for 12.1% below USGC prices. The loss to Petrobras from such price discrepancies in the second quarter was R9.968 billion ($4.93 billion), Rio newspaper O Globo reported in August. "There is a general effort in the company to make our project indicators get close to and even better than international indicators," Cosenza said. e also highlighted the company's new operational efficiency programs in the Campos Basin. In June Petrobras announced a target of $14.8 billion in disinvestment by 2013. The company has two new refineries under construction, but they will not be in full operation until 2015. Two more are in the evaluation stage. Cosenza said in August that imports would decrease from 2015 onwards.--Dom Phillips, newsdesk@platts.com --Edited by Robert DiNardo, robert_dinardo@platts.com
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