Petroleo Brasileiro SA, the state-run oil producer, fell for a seventh day before a board meeting at which a proposed new fuel pricing formula will be discussed.
The shares dropped 1.6 percent to 18.66 reais at the close of trading in Sao Paulo, its worst losing streak since 2009. They are down 13 percent over the past seven sessions. The Ibovespa equity benchmark was little changed today.
Brazil caps prices on fuel Petrobras sells domestically to control inflation, and the company needs approval to adjust them. The government may decide today on a request for a new pricing formula, Folha de S. Paulo reported, without saying how it got the information. The producer has asked for automatic increases or decreases tied to international levels, Chief Financial Officer Almir Barbassa said on Oct. 28. The proposal is scheduled to be reviewed at a meeting tomorrow.
President Dilma Rousseff opposes the oil producer’s proposed pricing formula, Valor Economico reported yesterday without saying how it got the information. Rousseff’s press office didn’t reply to a request for comment from Bloomberg News.
Petrobras said Oct. 25 that net income dropped 40 percent to 3.39 billion reais ($1.46 billion) in the third quarter from a year earlier on higher fuel imports and refining losses.