Petroleo Brasileiro SA (PETR4), Brazil’s state-controlled oil company, isn’t in talks with the government about boosting fuel prices, Chief Executive Officer Maria das Gracas Foster said. The stock fell the most in three weeks.
“There is no existing action between Petrobras and the federal government to increase fuel prices,” Gracas Foster told reporters today at a presentation at company headquarters in Rio de Janeiro. “The long-term pricing policy of Petrobras won’t be modified.”
Petrobras, Latin America’s largest company by market value, had its rating lowered to “market perform” from “outperform” by Bradesco BBI on Feb. 24 on concern that declining output will trim earnings as the government keeps fuel prices unchanged.
Petrobras fell 2.8 percent to 24.59 reais in Sao Paulo, the most since Feb. 14. The stock has dropped about 15 percent in the past 12 months, more than the 1.5 percent decline of Brazil’s benchmark Bovespa Index.
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