RIO DE JANEIRO, March 31 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) , opens new tab said on Monday it will lower refinery gate diesel prices for the first time in more than a year, as local prices currently stand above import parity.

The company said in a statement it would cut the price of diesel sold to distributors by 4.6% to 3.55 reais ($0.6197) per liter starting April 1, while gasoline prices are set to remain unchanged.

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Petrobras will also cut jet fuel prices to distributors by an average of 7.9% starting April 1, said the firm in a statement later on Monday.

The move marks the first diesel price tweak by Brazil's largest oil refiner since early February, when it delivered a nearly 7% hike, and the first cut since December 2023.

It should be good news for leftist President Luiz Inacio Lula da Silva, whose approval ratings have declined sharply in recent months amid high inflation.

Under Lula, Petrobras has adopted a new pricing strategy that is intended to protect fuel prices in Brazil from international volatility, while still keeping sales profitable for the firm.

Petrobras' move follows the appreciation of Brazil's currency, which has strengthened nearly 8% against the U.S. dollar this year, and occurred as global oil prices have traded below their levels at the time of the company's last price hike.

For most of this month, Petrobras' diesel prices have stood above import parity and were 2% above it on Monday, according to Abicom, a fuel imports association.

($1 = 5.7289 reais)

https://www.reuters.com/business/energy/petrobras-lower-diesel-prices-by-46-ceo-says-2025-03-31/