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On Monday, Petroleo Brasileiro (Petrobras) S.A. announced that, during a fuel price review, it had decided to increase the price of diesel fuel - a middle distillate - by an average of 9.5 percent and gasoline by 8.1 percent, effective from 6th December.

"The main variables that explain the Executive Group's decision are the noted increase in oil and oil product prices and the recent devaluation of the exchange rate. On the other hand, Petrobras' participation in the domestic diesel market has shown a few signs of recovery," Petrobras explained in an announcement.

Following last month's decision, on 9th November, to reduce the price of diesel by 10.4 percent, this resulted in marine distillate prices being slashed by $70 - at a similar percentage rate to diesel - in ports across Brazil the following day. At the port of Santos on 10th November, the price of MGO fell $70, or 10.3 percent, to $670.50 per tonne, whilst in Rio de Janeiro, MGO dropped $70, or 10.5 percent, to $594.50 per tonne.

With marine gas oil (MGO) currently priced at $570 per tonne in Santos, a 9.4 to 9.5 percent increase would put MGO at somewhere around $623 to $624 per tonne. A similar percentage increase in Rio de Janeiro would price MGO at $609 to $610 per tonne, up from current levels of $557 per tonne.

Under its relatively new management team, Petrobras is carrying out a review of its fuel prices at least once every 30 days.

Updated bunker prices in Brazil are expected later today.

Article update: 12:02 GMT

Petrobras increased its MGO prices by $50 per tonne in all Brazilian ports. The prices were confirmed in an update received at 11:49 GMT.

In Santos, the price of MGO jumped 8.8 percent to $619.50-$620.50 per tonne, up from yesterday's price of $569.50-$570.50 per tonne. In Rio de Janeiro, MGO was priced at $606.50-$607.50, up $50, or 9.0 percent, on the previous day.