Brazil’s Petrobras won’t artificially control fuel prices – CEO

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Joaquim Silva e Luna, CEO of Brazil’s state-run oil firm Petrobras speaks throughout a session on the plenary of the Chamber of Deputies in Brasilia, Brazil September 14, 2021. REUTERS/Adriano Machado

RIO DE JANEIRO, Oct 2 (Reuters) – Petrobras Chief Govt Officer Joaquim Silva e Luna stated there was “zero” threat that the state-run Brazilian oil firm would search to artificially management gas costs even amid rising public outrage over inflation.

Petroleo Brasileiro, as the corporate is formally recognized, should elevate gasoline and diesel costs in step with its worldwide worth parity coverage regardless of political stress on the contrary, the chief stated.

Petrobras this week raised diesel costs by about 9%, its first such hike in 85 days.

To this point this yr, diesel costs on the refinery have risen greater than 50%, prompting politicians like center-right Senate President Rodrigo Pacheco to name on Petrobras to train a “social operate” by serving to to restrict inflation.

“There is no such thing as a probability of this [controlling prices] taking place,” Luna stated in a cellphone interview late on Friday. “I contemplate it zero. Petrobras is a really nicely regulated firm, with compliance guidelines. No board goes to approve such a factor.”

Earlier governments led by the left-wing Staff Social gathering restricted Petrobras’ capability to cross oil worth hikes onto customers, producing billions of {dollars} in losses for the corporate, Luna stated.

Lula stated President Jair Bolsonaro, Mines and Power Minister Bento Albuquerque and Economic system Minister Paulo Guedes are satisfied that artificially controlling costs could be detrimental to Petrobras.

“One of the simplest ways for Petrobras to contribute is by paying taxes, dividends, royalties and [creating] jobs, not making a social coverage,” Luna stated.

Oil costs are more likely to rise within the closing quarter, pushed by demand for gas derivatives within the Northern Hemisphere, and home worth changes will largely rely on the alternate price. On Friday, oil settled above $78 a barrel, simply shy of a three-year excessive reached earlier this week, on expectations that OPEC ministers will preserve a gradual tempo in elevating provide.

“We’re within the good storm,” Luna stated. “Everyone seems to be rooting for the greenback to fall, however I am rooting for it greater than anybody else.”

The Brazilian actual has misplaced practically 6% of its worth towards the U.S. greenback previously 3 months, placing additional stress on items priced in {dollars} on the Brazilian market.

Reporting by Rodrigo Viga Gaier; Modifying by Christian Plumb
Writing by Ana Mano; enhancing by Diane Craft


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