Petrobrás director says fuel prices in Brazil are close to world market averages

The director of Finances at Petrobrás, Almir Barbassa, says the decision to maintain prices stable and not follow market variations in the second quarter meant that the company’s profits were flat for the first half of this year; that is, profits in the second quarter were about equal to first quarter profits.

“This took place against a background of sharply rising prices on international markets. However, the situation has calmed down now,” said Barbassa. [note: Petrobras has not adjusted domestic fuel prices since the middle of 2009].

The Petrobras director went on to say that company price policy and rising production prices had a direct influence on performance.

“We have to contract and train more personnel. We have costs for equipment. Now, as we reach peak production at some units average costs of production and refining will come down,” declared Barbassa.

In Barbassa’s opinion, since 2002, even with wide variations in prices on the international market, “…sometimes very low, sometimes very high, the fact is that on average for the whole period we have been selling our products at international prices on the domestic market.”