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SAO PAULO Jan 5 Brazilian state-controlled oil
company Petróleo Brasileiro SA increased diesel
prices at refineries by 6.1 percent on average with immediate
effect, citing higher oil prices and a stronger real currency.
According to a Thursday statement, the decision also stemmed
from stronger seasonal demand for diesel as winter peaked in the
For years, Petrobras kept fuel prices artificially low in
order to avoid pressuring inflation, absorbing sharp losses
whenever prices of crude rose in global markets.
Under Chief Executive Officer Pedro Parente, Petrobras
adopted a more flexible pricing policy, taking into
consideration the exchange rate, the company's market share and
other factors, to set wholesale fuel prices at its refineries.
It will continue revising fuel prices at least once every 30
days, Petrobras said.
If fuel distributors, gas stations and other intermediaries
choose to fully transfer the price increase to consumers, that
would translate into a 3.8 percent price hike at pumps,
according to the statement.
(Reporting by Bruno Federowski; Editing by Chris Reese and Lisa