Brazilian state-run oil company Petrobras BMFBOVESPA:PETR3 approved a mechanism to limit price volatility by introducing floor and ceiling levels for Brent crude in the formulas used to calculate natural gas prices.
The measure will be available to customers that choose to adopt it through amendments to their supply contracts, Petrobras said in a statement on Tuesday.
The mechanism will limit the gas price hike for state distributors to 6% in August, compared to a previously estimated 22% increase, it added.