Petrobras says that it will effectively double the invoiced price of MGO and LSMGO in order to maintain its net revenue, a customer notification dated 17 March explains.

The move follows last week's introduction of a 50% export tax on diesel oil, including marine gasoil (MGO) and low-sulphur marine gasoil (LSMGO), by Brazil's federal government through Provisional Measure 1,340/2026, effective 12 March.

According to Petrobras's tax department interpretation, the levy applies to the total invoice amount rather than solely the product value. To achieve a net remuneration of $1,000 per tonne, the company says it must now invoice $2,000 per tonne — with 50% representing the tax and 50% constituting Petrobras' net revenue.

The tax does not apply to very-low-sulphur fuel oil (VLSFO) sales.

Petrobras acknowledged the effect the levy would have on customers. "We are fully aware of the significant impacts of this measure on our clients and on the MGO and LSMGO market in Brazil," the company said.

The supplier has outlined different approaches for transactions at various stages of completion.

For purchases concluded but not yet delivered, Petrobras is offering clients two options: cancellation without penalties for either party, or proceeding with delivery at twice the originally agreed price to reflect the full tax impact.

For purchases already delivered but not yet invoiced, the company will adjust the stem value to incorporate the tax, resulting in payment equivalent to double the original price.

Petrobras stated it is currently assessing how to proceed with collecting the tax on purchases delivered from 12 March onwards that have already been invoiced.

For new transactions, both nomination and stem prices will fully incorporate the tax impact and may deviate from international market benchmarks, the company noted.

The provisional measure represents a significant shift in Brazil's bunker fuel market pricing structure, potentially affecting the country's competitiveness as a bunkering destination for vessels requiring distillate marine fuels.

Brazil's provisional measures are temporary legislative instruments that take immediate effect but require congressional approval within a specified timeframe to become permanent law.