Brazilian state-run oil firm Petrobras BMFBOVESPA:PETR3 said on Tuesday it is cutting diesel prices to distributors, yet the effect will be neutral as the company is simultaneously suspending an equal-size temporary discount on the fuel.
In a statement, Petrobras said it is reducing diesel prices to distributors by 0.3515 reais ($0.0682) per liter as of July 1, citing changes in the domestic and external oil and derivatives markets.
At the same time, Petrobras said that it is suspending a temporary diesel discount it has been offering of the same amount, a move that keeps the firm's prices to distributors unchanged at an average 3.30 reais per liter.
Earlier in the day, the Brazilian government announced it will cut a subsidy of 0.35 reais per liter from July, scaling back part of broad fuel-focused aid measures it had launched this year to limit the impacts of higher global oil prices.
($1 = 5.1565 reais)