March 7 (Bloomberg) -- Petroleo Brasileiro SA is unlikely to raise gasoline prices in 2008, Folha de S. Paulo reported, citing Chief Executive Officer Jose Sergio Gabrielli.

The Brazilian currency's appreciation against the dollar has helped offset an increase in oil prices in international markets, Gabrielli said, according to Folha.

Increased consumption of ethanol and natural gas in Brazil has also prevented Petrobras from raising gasoline prices, the newspaper said, citing Gabrielli.

Petrobras last raised prices at the end of 2005, Folha said.

To contact the reporter on this story: Laura Price in Sao Paulo at lprice3@bloomberg.net.

Last Updated: March 7, 2008 07:12 EST