After due consideration by its Board of Directors, Petrobras has decided on the new diesel and gasoline pricing policy to be implemented as from November 29th, 2013.
The new pricing policy is based on the following principles and objectives:
a) Ensuring that indebtedness and leverage ratios return to within the limits established in the 2013-2017 Business and Management Plan within the next 24 months, based on growth in oil production and the new diesel and gasoline prices;
b) Aligning Brazilian and international prices within a similar period;
c) Shielding domestic consumers from the effects of international price volatility.
In line with this pricing policy, the following increases are to be implemented at the refinery gate, with effect from 00.00 hours on November 30th, 2013.
Product Increase (*)
Gasoline A -- 4%
Diesel ------- 8%
(*) average in Brazil
The diesel and gasoline prices to which the increases apply do not include federal (CIDE and PIS/Cofins) and state (ICMS) taxes.
Following the recommendation of its Board of Directors, the parameters of the pricing method will be kept strictly in-house for commercial reasons.
The Board of directors is responsible for assessing the effectiveness of the pricing policy based on changes in the Company's indebtedness indicators and leverage ratios.
Rio de Janeiro, November 29th, 2013.
Almir Guilherme Barbassa
Chief Financial and Investor Relations Officer
Petróleo Brasileiro S.A. – Petrobras