At Petrobras, fuel prices turn into a goat in the room
The first meeting of Petrobras' board of directors after the elections, on Monday, was an example of the reality checks that Lula 4 will face in the coming months. Not even 24 hours had passed since the polls opened when the state-owned company's board demanded plans to increase fuel prices at its refineries.
The Petrobras board of directors met for the first time after the elections and discussed the need to increase fuel prices, as the company's current pricing policy is not being met. The state-owned company has been maintaining low fuel prices in the domestic market, but this has resulted in a significant gap with international prices, with diesel prices 127% lower than the international benchmark and gasoline prices 32% lower.
The board is aware of the issue, but implementing price adjustments could have a major impact on the economy. The Brazilian government has been subsidizing fuel prices, with estimated monthly costs of around 9 billion reais, which could be offset by increased revenue from oil sales if prices remain high.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
