# Petrobras cuts gasoline prices for distributors by 4.9% starting Tuesday

*Brazil’s state-run oil company announces its second fuel price reduction of 2025, bringing the average sale price to R$2.71 per liter. Diesel remains unchanged.*

- Published: 2025-10-20
- Section: Insights
- Tags: Oil, PETR4, Petrobras
- URL: https://brazilstockguide.com/insights/petrobras-cuts-gasoline-prices-for-distributors-by-4-9-starting-tuesday/

![Petrobras PETR4 price target](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/pzzb5476.webp?fit=1024%2C613&ssl=1)

*Petrobras Target Raised to R$47 by XP (Agência Petrobras)*

**By Brazil Stock Guide –** **Petrobras** (BVMF: PETR4, PETR3; NYSE: PBR) will lower its sale price of gasoline to distributors by **4.9% starting Tuesday, October 21**, setting the average wholesale price at **R$2.71 per liter**, a reduction of **R$0.14** per liter. The company said the move reflects its commercial policy of aligning domestic fuel prices with international benchmarks while maintaining competitiveness.

It marks the **second gasoline price reduction in 2025**, totaling a drop of **R$0.31 per liter**, or **10.3%** so far this year. Since **December 2022**, Petrobras has reduced gasoline prices by **R$0.36 per liter**, equivalent to a **22.4% decline when adjusted for inflation**. The last cut occurred in August.

The adjustment comes amid a **decline in global oil prices** — with Brent crude down more than 3% in early October — and a **mild appreciation of the Brazilian real** against the U.S. dollar, both of which ease Petrobras’s import costs. Together, these factors are expected to **support a gradual decline in inflation**, already reflected in market forecasts.

According to the **Central Bank’s Focus survey**, released Monday, economists now expect **2025 inflation at 4.70%**, down for the **fourth consecutive week** and edging closer to the **official target ceiling of 4.5%**. Several analysts already see inflation ending the year **within the target range**, supported by lower fuel prices and a favorable exchange rate.

For **diesel**, Petrobras said it will **keep current prices** for distributors unchanged. The company has implemented **three diesel price cuts since March 2025**, and when adjusted for inflation, wholesale diesel prices have fallen **35.9%** since December 2022.

### **How fuel prices are formed**

Petrobras’s pricing adjustments only partially influence what drivers pay at the pump. According to data compiled by Petrobras based on ANP and CEPEA/USP figures, the company’s share represents **about one-third of the final gasoline price**, with taxes, ethanol blending, and retail margins accounting for the remaining two-thirds. The company’s latest reduction is expected to bring **pump prices down by roughly R$0.10 per liter**, from **R$6.22** to about **R$6.12** on average across Brazil — further reinforcing the **disinflationary trend** heading into year-end.

---

Source: Brazil Stock Guide, https://brazilstockguide.com/insights/petrobras-cuts-gasoline-prices-for-distributors-by-4-9-starting-tuesday/