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Petrobras working to recover market share in distribution, new contracts for gas and diesel distributors

By Reuters

Petroleumworld 01 30 2018

Brazilian state-controlled oil company Petroleo Brasileiro SA said on Monday it is working on a new contract model for gasoline and diesel distributors in a bid to recover market share that has was lost to competition from importers.

“With the new contract model for gasoline and diesel oil in the pipeline, Petrobras aims to strengthen its relationship with its customers, increase its market share, and increase its competitiveness by delivering the highest level of service,” Petrobras said in an email.

The new contract was first reported by local newspaper Valor, which said it would be released in May and include price differentiation.

Petrobras denied the price differentiation would be included in the new contract system and did not comment on the timeline.

In the first 11 months of 2017, Brazil imported nearly 207 million barrels of refined products, 25 percent more than the same period in 2016 and up from any full year on record, as rival market share in the distribution market shot up.

Reporting by Alexandra Alper and Marta Nogueira; Editing by Jeffrey Benkoe from reuters. 01 29 2018

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