Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 22

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 22
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 clients, whether public or private institutions, with the purpose of guaranteeing supplies to the domestic oil, natural gas, products and energy market. In this case, we may be required to provide products and services even in situations in which these clients and institutions are in default with contractual or legal obligations, where we have no legal and contractual obligations to provide such services or products or in unfavorable economic and commercial conditions. Although we typically appeal these decisions to higher courts, a requirement that we provide such supply in exceptional situations may adversely affect our economic and financial condition. For more information on legal proceedings in which we or our subsidiaries are parties, see item “Legal and Tax – Legal Proceedings” in this annual report.
 
6) Risks related to sectors of the economy in which we act
 6.a) Our cash flow and profitability are exposed to the volatility of prices of oil, gas, LNG and oil products. 
 Most of our revenue derives primarily from sales of crude oil, oil products and, to a lesser extent, natural gas. International prices for oil and oil products are determined by several factors that are beyond our control. Volatility and uncertainty in international oil prices will likely continue because they are structural and influenced by conditions and expectations of global supply and demand. Changes in oil prices usually result in changes in the prices of oil products and natural gas. Substantial or extended declines in international oil prices may have a material adverse effect on our business, results and financial condition and may also affect the value of our Proved Reserves.
 On May 16, 2023, we announced the approval of our commercial strategy for setting diesel and gasoline prices, replacing the gasoline and diesel pricing policy sold by our refineries. The commercial strategy uses market references such as: (a) the customer's alternative cost, as the value to be prioritized in pricing, and (b) the marginal value for us. The customer's alternative cost considers the main supply alternatives, whether suppliers of the same or substitute products, while the marginal value for us is based on the opportunity cost given the various alternatives for the company, among them, production, imports and exports of the product and/or the oils used in the refining process. The commercial strategy is premised on competitive prices per sales hub, places where the ownership of our products is transferred to third parties, in balance with the national and international markets, taking into account the best alternative accessible to customers.

Annual Report and Form 20-F 2024 |

Price adjustments will continue to be made without a previously defined periodicity,