SAO PAULO--The Brazilian government approved a plan by state-controlled oil company Petroleo Brasileiro SA (PBR, PETR4.BR) to increase fuel prices by up to 10%, local newspaper Folha de S. Paulo reported in its Thursday edition.
According to the newspaper, which didn't reveal where it got the information, the government will allow the company to reveal the exact amount of the price increase next month.
Company and federal government officials weren't immediately available for comment.
The increase is likely to be at the same level of the previous one, which took place in October, the report said. At that time, Petrobras convinced the government to allow it to raise domestic fuel prices, but a tax cut avoided any impact on inflation and consumers' pocketbooks.
In two moves, in October, Brazil's government reduced the CIDE tax on sales of gasoline and diesel fuel, while Petrobras announced 10% and 2% price increases, respectively, for the two fuels. The tax cut offset the price increases.
Domestic fuel prices remain nearly 30% below international prices, according to analysts.
Write to Rogerio Jelmayer at rogerio.jelmayer@dowjones.com
(END) Dow Jones Newswires
June 21, 2012 07:15 ET (11:15 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.