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Petrobras (PBR) Hikes Gasoline Prices, Leaves Diesel Intact

Petrobras PBR or Petroleo Brasileiro S.A. declared that it is raising gasoline prices by an average of 7.5%, earlier this week. This is the company's first gasoline price increase since June, though diesel prices will remain stable. The new price for gasoline will be 3.31 reais, which is equivalent to 63.91 cents.

The announcement came even as the company’s next CEO, Jean Paul Prates — who was selected by the newly elected Brazilian President, Luiz Inacio Lula da Silva — previously stated that he does not plan to fully disconnect Petrobras' fuel prices from international market prices, but instead aims to "unlink them from import parity." This means that the prices may still be influenced by global market conditions, but will not be directly tied to the cost of importing fuel into Brazil.

The company currently sets the fuel prices in the local market based on international rates, including the foreign exchange rate and global crude oil prices. This means that the company's fuel prices will change in response to changes in the international market, rather than being set by the import parity.

Investors should know that pricing policy is a sensitive issue for the company, which caused the ouster of three CEOs during the term of the previous President, Jair Bolsonaro, after an increase in fuel prices stoked voter frustration in an election year.

Zacks Rank and Key Picks

Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America.

Currently, Petroleo carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like ProFrac Holding Corp. (ACDC),Helmerich & Payne (HP) sporting a Zacks Rank #1 (Strong Buy) and Calumet Specialty Products Partners (CLMT) holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ProFrac Holding Corp.:  ACDC currently has a Forward P/E ratio of 3.91. For comparison, its industry has an average Forward P/E of 25.60, which means ACDC is trading at a discount to the group.

ProFrac Holding Corp. is worth approximately $3.34 billion. Its shares have gained 30% in the past year.

Helmerich & Payne: HP is valued at around $5.20 billion. Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised 18.8% higher.

Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 124.22%, on average. In the past year, the HP stock has increased by 78.9%.

Calumet Specialty Products Partners: CLMT is worth approximately $1.33 billion. Its shares have gained 19.5% in the past year.

Calumet Specialty Products Partners, L.P. is a leading independent producer of high-quality, specialty hydrocarbon products in North America.

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Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report

Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

Calumet Specialty Products Partners, L.P. (CLMT) : Free Stock Analysis Report

ProFrac Holding Corp. (ACDC) : Free Stock Analysis Report

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