Petrobras Denies Folha Report It’s Planning to Raise Fuel Prices

Petroleo Brasileiro SA (PETR4), the most indebted publicly traded oil company, denied a newspaper report that it’s planning to raise gasoline and diesel prices.

Folha de S.Paulo newspaper reported that the state-owned oil company may increase fuel prices before June to avoid contributing to inflation during President Dilma Rousseff’s re-election campaign, without revealing sources.

“Regarding the news report published today, Petrobras reaffirms that there is no decision for the gasoline and diesel price increase,” the Rio de Janeiro-based company said in an e-mailed statement.

The Folha report is “baseless” and the government hasn’t discussed such a price increase, Brazil’s Energy Ministry said in an e-mailed statement today.

Petrobras rose 2.2 percent to 16.04 reais at the close in Sao Paulo.

To contact the reporter on this story: Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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