WSJ:Brazil's Petrobras To Cut Natural Gas Prices By 19%
SAO PAULO (Dow Jones)--Brazilian state-run energy company Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, will cut the price of natural gas by nearly 19% as of Nov. 1, providing some welcome news for the outlook for inflation.
In a statement published late Thursday, Petrobras said it cut prices due to prevailing market conditions.
Petrobras reviews natural gas prices each quarter in accordance with criteria taking into account domestic and international market conditions. In the previous quarter, the company reduced gas prices by 14.3%.
The company's main consumers of natural gas are local industries and electric power utilities.
The news will doubtless be welcomed by the central bank, which is struggling to bring down high inflation, which currently stands above 7%.
Inflation in Brazil has broken through the 6.5% upper limit of the government's target range in recent months. The 12-month inflation rate as of mid-October was 7.12%.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071; rogerio.jelmayer@dowjones.com
