Brazil proposes to compensate Petrobras for price cut amid truckers' protest

Brazil has proposed to compensate the state-led oil firm Petroleo Brasileiro SA for losses up to 1 billion reais if it maintains a 10 percent reduction in diesel prices for 60 days

Brazil has proposed to compensate the state-led oil firm Petroleo Brasileiro SA for losses up to 1 billion reais (USD 274 million) if it maintains a 10 percent reduction in diesel prices for 60 days as truckers' paralyse Brazil in a protest over fuel prices.

Truck drivers in Brazil are protesting over the increase in domestic fuel prices that has affected more than 18 states and have blocked main highways around the capital.

Petrobras yesterday announced that it would cut diesel prices temporarily and the price cut will remain for 15 days and will cost the company about 350 million reais (USD 96 million).

Petrobras decision had raised investors' concerns about the government interference in Petrobras.

Explaining the decision at a press conference, CEO of Petrobras, Pedro Parente said," The independence of Petrobras has not been damaged. It was an exceptional measure and does not represent a change to our pricing policy."