Petroleo Brasileiro SA (PETR4) will inevitably need to increase fuel prices, Folha de Sao Paulo reported, citing an interview with Chief Executive Officer Maria das Gracas Foster.
Petrobras, as the oil company is known, will have to raise fuel prices if Brent crude continues to trade over $120 per barrel, Foster told the Sao Paulo-based newspaper. Petrobras has strong enough financial margins to compensate for the lack of increases for several months, Foster said, according to Folha.
Brazil’s government caps Petrobras’s fuel prices in order to fight inflation.
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