Petrobras increases prices for Brazilian natural gas distributors by around 20% in May

The executive director of the industry group Abegas stated that Brazil's state-run petroleum company Petrobras could raise prices for natural gas sold to distribution companies by up to 20% in May, due to an increase in global oil prices.

Petrobras adjusts natural gas prices every quarter, based on Brent oil. The last adjustment was made in early February, just before the U.S. and Israel war against Iran caused a spike in global oil prices.

According to its Executive Director Marcelo Mendonca, Abegas is concerned that a further increase of more than 35% could occur in August, based on the current market data.

He said: "We do not have the margin or resources to withstand an increase in price of this magnitude." Mendonca said that distributors were asking the Brazilian government to take steps to reduce the impact of higher natural gas prices. Reporting by Marta Nogueira, Writing by Fernando Cardoso and Editing by Inigo Alexandre

(source: Reuters)