Brazil’s state-controlled oil company Petroleo Brasileiro SA (PBR, PETR4.BR) is seeking a fuel price hike of up to 15% in order to finance its investment program in the coming years that will require billions of dollars, Folha de S. Paulo newspaper reported Wednesday.
The hike in fuel prices will take place from next year onward, but Petrobras is still evaluating if there should be a one-off increment in February or if the hike should be divided into two phases, with the first part in February and the other in August.
The increase in prices will hit gasoline and diesel, according to the report, which didn’t say where it got its information.
Petrobras reported record-breaking and better-than-expected net profit of $ 6.86 billion in the second quarter of this year, an increase of 31.9% over the same period in 2010. In the same comparison, EBITDA rose by 4%, to $ 20.25 billion, and net income grew 12% to $73 billion.
The results could be even better. However, Petrobras, which is state-controlled, has kept prices of gasoline and diesel unchanged in Brazil.
Last year, Petrobras raised $70 billion, becoming world’s largest share issue in history. The national champion has a record of causing euphoria among Brazilians. Lula, Brazil’s former president once said that, “I believe in a certain period of the history of Brazil there will be direct elections for Petrobras’ president, and this person will nominate the president of the republic.” Earlier this year, Almir Barbassa, Petrobras CFO, implied that Petrobras could outstrip Exxon Mobil and Aplle to become the world’s largest company in an interview for Forbes.(See: Petrobras CFO On Becoming Bigger Than Exxon And Apple: I Buy Oil Every Day, iPads Every 2 Years).