Profit at Brazil’s state-owned oil company Petrobras declined 20% in the second quarter under the weight of elevated costs during the period, the company reported. Petrobras posted profits of $2.18 billion, down from $2.73 billion in the same period last year. With the quarter’s result, the company’s profits in the first half of the year came in 25% lower than the same period in 2013. The company attributed the latest disappointing results to rising costs, including tax payments and imports. The cost of petroleum derivatives imports alone was up 55%, while the cost of raw petroleum imports rose 20%. Company officials meanwhile, said that they continued to seek local price increases to help offset the impact of rising costs. “In parallel to increases in production and reduction of costs, we seek the convergence of prices of derivatives in Brazil with international prices in such a way as to make the financial indicators, net debt, and leverage feasible,” said Petrobras President Graça Foster in a note. Brazil’s Finance Minister, Guido Mantega, who is chair of the company’s board of directors, said this week that the government was considering authorizing price increases as early as the end of this year, but did not say whether the increases would fully compensate for difference in prices practiced internationally.