Petrobras CEO promises to hold fuel prices steady - Bolsonaro

Petrobras CEO promises to hold fuel prices steady - Bolsonaro

Reuters  | Sep 17, 2019 03:01

Petrobras CEO promises to hold fuel prices steady - Bolsonaro

RIO DE JANEIRO (Reuters) - Brazilian President Jair Bolsonaro said on Monday that state-run oil firm Petrobras was not planning to raise fuel prices in response to the weekend attacks in Saudi Arabia.

In an evening interview with Brazil's Record TV, Bolsonaro said he was told by Petrobras Chief Executive Roberto Castello Branco that while fuel prices set by the firm tend to follow international prices, the recent rise in oil prices was "atypical" and short-term in nature.

"I talked a little bit ago with Petrobras' CEO, Castello Branco," Bolsonaro said in televised remarks. "He told me that, as it's something atypical and that it appears it will end, he's not planning on adjusting fuel prices."

In response to a massive truckers' strike in May 2018, Brazil's government forced Petrobras to cut fuel prices, leading the firm's then chief executive, Pedro Parente, to resign in protest. That in turn sparked a major sell-off in the company's shares.

Investors ever since have been wary of possible political interference at Petroleo Brasileiro SA (SA:PETR4), as the firm is formally known.

Bolsonaro's government, which took power in January, has pledged a hands-off approach to the firm. But Bolsonaro is a relative newcomer to free market economics, and for decades had advocated interventionist policies as a federal congressman.

In a note to clients earlier on Monday, analysts at UBS led by Luiz Carvalho said the drone attacks on Saturday on Saudi Aramco facilities, which interrupted about 5% of the world's oil supply and sent prices soaring, would be a good test for Petrobras.

"Over the past years, we have seen several examples where the company was not able to follow international prices leading to significant losses in the refining business," the analysts wrote. "Current management has been able to implement a successful strategy so far and this event might be an important test on how solid the policy is."

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.