Brazilian state oil company Petrobras approved a new fuel pricing policy for gasoline and diesel that will sharply lower costs for motorists, it announced on Tuesday, ditching a more market-based policy in favor of greater flexibility to smooth price swings.
President Luiz Inacio Lula da Silva celebrated the new policy for Brazil’s millions of motorists in a post on social media later on Tuesday, declaring it “a victory for the people.”
The new pricing system scraps a so-called fuel import parity policy that more closely aligned prices at the pump with the oil market and exchange rates. Lula, as the leftist leader is known, had promised to change that to make fuel cheaper.
By Gabriel Araujo and Marta Nogueira via Reuters