With inflation falling below 5%, however, the government relented and the company raised wholesale prices on gasoline a few weeks ago and followed that the boost in diesel prices announced yesterday. The company’s new president had argued that without the price rise Petrobras would not be able to pay for its massive $237 billion investment in developing its vast offshore discoveries. Petrobras was last allowed to raise prices in 2006.
The company also announced a new oil discovery in the Espirito Santo Basin about 36 miles offshore. Petrobras owns 40% of the new discovery and Anadarko Petroleum Corp. (NYSE: APC) owns 30%, with the remaining 30% owned by a joint venture of two Indian firms. The size of the discovery has not been determined yet.
Due the requirement that Petrobras sell gasoline and diesel fuel at less than cost, the company piled up a loss of nearly $7 billion in the 12 months ending March 31st.
Petrobras shares are up 5% this morning at $19.67 in a 52-week range of $17.27-$35.10.
Paul Ausick
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.