The Bolsanarists are looking for strategies to prevent the rise in fuel prices
If Brazilian Energy Minister Adolfo Sachida heads to the House on Tuesday to answer questions about the current state of the state-owned oil company Petrobras, President Jair Bolsonaro’s government is working out other strategies to stem the continuing rise in fuel prices.
The Minister of Mines and Energy argued that President Jair Bolsanaro’s government was not in a position to interfere with the company’s fixed fuel prices. Diesel and gasoline “need to be clear, can’t interfere with price”. “We have a legal framework that prevents government interference, even if the government is a majority shareholder.”
Sachida made those comments during a hearing promoting the creation of a parliamentary inquiry commission against Petrobras’ board of directors. End continuous adjustment of fuel prices in pumps.
The increase has been ordered to meet international prices, but it is outrageous that Bolzanaro’s company is trying to keep its profits unchanged in the event of a global crisis, and Petrobras believes that some of its “outrageous” dividends on behalf of the Brazilian people. Bolzanaro claims that not doing so is tantamount to treason.
The current crisis led to the resignation of Petrobras CEO Jose Ferreira Coelho on Monday, after which shares fell 8%, on Tuesday they went down 1.03% and preferred shares fell 2.43% on the Sೊo Paulo Stock Exchange.
State-owned companies law passed under former President Michael Temer (2016-2018) restricts any administrative capabilities to interfere with pricing policies or any other corporate decisions from a politically motivated perspective. Fuel prices in pumps are a sensitive issue in an election year in which Bolzano pursues the opposition candidate and former head of state, Luiz Inacio.
Lula da Silva in all surveys.
Sachida insisted that the structural solution to Petrobras’ problems was to privatize the market in order to control prices based on greater “competition”, but he agreed that this option would be valid in the medium term and would not provide an emergency response. The current crisis.
Petrobras is a state-owned free investment company with shares on the New York and Sೊo Paulo stock exchanges, comprising a majority of the members appointed by the board of directors.
Government. But despite the government’s proposal, Petrobras’ CEO must have a background in energy issues.
Bolzanaro and his ministers have received reports from lawmakers recommending a change in the law of state-owned companies, which is considered the most straightforward way to hold elections for less than four months.
Last week, Bolzanaro said the country would be on the verge of “chaos” if the rise continued, which was finally confirmed with an increase of 14.26% in diesel and 5.18% in gasoline on Friday.
Congressman Ricardo Barros has announced that he will submit a bill that includes a temporary measure to allow the government to set prices in line with the current administration’s interests, which Lira is said to have accepted as the move would have an immediate effect. , Which needs to be ratified by Congress at a later stage.
“State-owned companies have become autonomous creatures with their own lives, many times fragmented by the government of the moment,” Lira said Monday.
In the meantime, the government continues to collect signatures on the oil company’s directors to create a CPI. As of Tuesday afternoon, 79 of the 171 signatures required for body composition had been obtained.