LatAm Oil & Gas: Brazil Fuel Gauge: Diesel at an 11% discount to parity; gasoline at 14%

Research evidence excerpt

LatAm Oil & Gas: Brazil Fuel Gauge: Diesel at an 11% discount to parity; gasoline at 14%

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LatAm Oil & Gas

Brazil Fuel Gauge: Diesel at an 11%

discount to parity; gasoline at 14%

Industry Overview

Tracking Brazil domestic fuel prices vs. import parity 08 June 2026

Our Weekly Brazil Fuel Gauge compares PBR diesel and gasoline prices to IPP, as PBR is Equity

Brazil’s largest supplier, with ~70% of share. We also present the prices charged by Latin America

Acelen and Brava Energia, which have a presence in the downstream segment as well. Oil & Gas

International prices rose; discounts widened CaioResearchRibeiroAnalyst>>

International diesel prices in BRL increased by 7% WoW leading to a widening of Merrillcaio.ribeiro@bofa.comLynch (Brazil)

discounts to import parity. For diesel, including total import subsidies of R$1.47/liter, we Leonardo Marcondes >>

estimate the current prices to be at a discount of 11% (vs. a 3% discount in the prior Research Analyst

week, post the subsidies). Excluding subsidies, the discount would be 36%. On gasoline, Merrillleonardo.marcondes@bofa.comLynch (Brazil)

international prices quoted in BRL increased by 4% WoW, therefore discount widened to Nicolas Barros >>

14% (vs. 10% last week) – considering the subsidies of R$0.44/liter. On a YTD basis – Research Analyst

Merrill Lynch (Brazil)

which serves as the reference window for PBR’s pricing policy and is reset at the start of nicolas.barros@bofa.com

each fiscal year – and incorporating import subsidies for both fuels, we estimate diesel

at an average 11% discount to parity, while gasoline at a 17% discount.

PBR’s gasoline crack spread at breakeven

Exhibit 1: Trading at a discount vs IPPYTD, Petrobras has implemented some fuel price adjustments. In diesel, prices were