Can R$12.2 Billion in Fuel Subsidies Ease Petrobras’ Pricing Pressure?

Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) is receiving billions of reais from Brazil's fuel-subsidy programs at a time when elevated international diesel prices are making its domestic pricing strategy increasingly important. The company's board recently approved joining a new government subsidy program worth R$1 per liter of road-use diesel A for 30 days, with the possibility of an additional 30-day extension. The new benefit is cumulative with an existing R$1.12-per-liter subsidy. READ ALSO: Amazon Taps Prysmian and Rio Tinto for Low-Carbon Data Center Cables. What Does it Mean for Investors? That potentially puts the combined support at R$2.12 per liter while both programs are in effect.