OREANDA-NEWS. November 11, 2016. Petrobras sharply reduced its marine gasoil (MGO) posted prices by \\$70/t in ports across Brazil. Petrobras declined to comment, but the drop in MGO could be attributed to a Wednesday diesel and gasoline price cuts driven by a new policy.

In October Petrobras implemented a new fuel pricing policy which aims to maintain gasoline and diesel prices in Brazil in parity with international prices. A pricing committee was established to review and adjust domestic diesel and gasoline prices on a monthly basis.

Petrobras high-sulphur 380cst Brazilian indications are currently the cheapest in Latin America, but historically their MGO prices have been among the highest in the region. The monthly diesel price adjustment affect the MGO market and the company may be able to spur buying interest.

Delivered MGO price in the biggest bunkering port in Brazil – Santos dropped from \\$677.50/t to \\$607.50/t on Thursday. MGO in the second biggest bunkering port in Brazil – Rio de Janeiro - was down to \\$594.50/t from \\$664.50/t. The drop brought the price of Brazilian MGO below the competing ports of Buenos Aires, Brazil and Montevideo, Uruguay. But MGO remained cheaper elsewhere in North America and Latin America on Thursday.