Reuters reported that Brazil's state run Petrobras expects an increase in fuel sales revenue to cushion the impact of global oil price volatility once local prices are raised.

Mr Jose Sergio Gabrielli CEO of Petrobras said that "This gives a stable cash generation to the company regardless of international fluctuation in the price of oil."

Petrobras has announced that it was raising fuel prices for the first time since May 2008, a move welcomed by investors worried that government price controls to cool inflation will eat into the company's profit.

Mr Gabrielli said that Brazil has a long term pricing policy and does not pass on the daily fluctuations in oil prices to its market. However, we have to adjust the Brazilian price to the international price in the long run.

(Sourced from Reuters)