Petroleo Brasileiro Petrobras : Petrobras reduces diesel prices by 10%

Rio de Janeiro, May 23, 2018 - Petróleo Brasileiro S.A. - Petrobras informs that its Executive Board, in a meeting held this afternoon, decided to decrease by 10%, equivalent to R$ 0.2335 per liter, the average diesel price sold at its refineries. As a result, Petrobras average sale price in refineries and terminals without taxes will be R$ 2.1016 per liter as of tomorrow and will remain unchanged for 15 days. After this period, the company will gradually resume its pricing policy approved and disclosed on June 30, 2017.

This decision will be applied only to diesel and aims to allow the government and truck drivers' representatives time to negotiate a definitive agreement to the current strike context while avoiding negative impacts to the population and company's operations.

This is an exceptional measure and does not represent a change in Petrobras' pricing policy. With this decision, the company believes that it is possible for the government and truckers' representatives to find a solution that has a definite impact on the diesel prices sold in Brazil.

In Petrobras' view, the discussion regarding reductions in the federal and state tax applied to this product is essential to this negotiation, since taxes represent the largest share of fuel prices formation.