Brazil's Petrobras lowers fuel prices even as oil rises internationally

Brazilian oil company Petrobras will reduce diesel and gasoline prices at refineries by about 5 cents per liter from Saturday, the Brazilian Association of Fuel Importers (Abicom) and consultancy and brokerage StoneX said.

The move would be the first under the management of General Joaquim Silva e Luna, who replaced Roberto Castello Branco as the company's top executive after the government apparently disagreed with the state-run company's fuel pricing policy.

Petrobras did not immediately comment on the matter.

After landing the top job at Petrobras, Luna said he would look to avoid volatility in the domestic fuel market while not "disrespecting" international price parity.

In a note on Friday, brokerage Ativa Investimentos said its model indicated a potential 13% rise in gasoline prices, driven by the increasing international oil prices. (Reporting by Marta Nogueira, Writing by Ana Mano, Editing by Louise Heavens)

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