Brazil’s Petrobras price hikes show company’s independence
RIO DE JANEIRO – Brazil President Jair Bolsonaro was not consulted or informed about state oil giant Petrobras’ decision this week to raise fuel prices, which underscores the company’s independence, Chief Executive Joaquim Silva e Luna told Reuters on Wednesday.
The ex-army general chosen in April by Bolsonaro to lead the
company said there has not been and there will not be any external interference
in fuel price adjustments.
His comments come after his predecessor was pushed out by
Bolsonaro following a disagreement over fuel price hikes, raising alarm among
investors about government interference in the oil producer.
Luna said the increases were necessary due to the high price
of oil on global markets, but stressed that all price hikes are done on
technical grounds, based on the future outlook for demand and supply.
With oil at $73 a barrel, domestic inflation at its highest
in years and the COVID-19 pandemic still hanging over the economy, Luna
admitted that Petrobras is in a difficult position.
“That’s the reality, but it doesn’t change the pricing
policy,” Luna said.
Petrobras on Monday announced the first increase in diesel
and gasoline prices since Luna took over as chief executive on April 19.
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