Petrobras temporarily suspends MGO and LSMGO export sales

The move comes as the company assesses the impact of Brazil’s newly imposed 50% diesel export tax.

IMAGE: Containers transported across the Rio–Niterói Bridge in Brazil. Getty Images.

Petrobras has temporarily suspended export sales of marine gasoil (MGO) and low-sulphur marine gasoil (LSMGO) after the Brazilian government enacted legislation imposing a 50% export tax on diesel oil, including marine gasoil, on Thursday.

The Brazilian government has enacted this tax as a temporary measure to reduce the impact of price swings related to the conflict in the Middle East, on local fuel prices.

Under Petrobras’ contractual terms, any applicable taxes, duties, or governmental charges are passed through to buyers.

For sales that have already been concluded but not yet delivered, the newly introduced export tax will be incorporated into the final price.

If buyers do not agree to the inclusion of the tax, the transaction may be cancelled, the company said on a client's note.

The export tax does not apply to vessels engaged in cabotage voyages.

By Gautamee Hazarika

Please get in touch with comments or additional info to news@engine.online