PPI is no longer the sole parameter used by Petrobras for fuel prices, says Jean Paul Prates.
"The PPI only guarantees the competitor a comfortable position. There is a domestic market," stated the president of Petrobras.
247 - The president of Petrobras, Jean Paul Prates (PT-RN), stated that, at the state-owned company, the Import Parity Price (PPI) "is no longer the only parameter" for pricing policy in Brazil. "The PPI only guarantees the competitor a comfortable position. There is a domestic market," he added. According to the executive, other references, besides the PPI, will influence the prices of products sold in Brazil.
"The market sets the price; the company makes its commercial policy. I adjust contracts to better suit a client, offering better conditions. If the client is a poor payer, the company adjusts the conditions differently." "Whoever has more supply is closer to the customer. The price is lower for those who buy more, lower for those with more accessible delivery points, and lower for those who pay on time. That's how it is today," he explained.
"O The (Brazilian) market will reach the PPI (Integrated Production Process) for the first cubic meter it needs to import, after supplying the entire (domestic) market in areas of influence," he added.
According to the president of Petrobras, the administration of President Luiz Inácio Lula da Silva (PT) "does not like PPI". "The government does not consider PPI adequate as a reference for prices in a country that is self-sufficient in oil."
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The leader also highlighted the importance of investments in clean energy sources. "We will promote an energy transition, which cannot leave the base of the pyramid poorer. It must distribute wealth," he stated.
"We will seek diversification without neglecting important businesses. Oil and gas production will still need to provide the planet's necessary energy. Oil production is not going to disappear overnight."