Interlocutors say Petrobras chief warned Bolsonaro about fuel adjustments

President PetrobrasGeneral Joaquim Silva e Luna, according to President Jair Bolsonaro’s interlocutors, warned that a fuel readjustment was inevitable due to the price lag in relation to the international market.

Capital market rules prevent the SOE from passing on privileged information about price adjustments, which can affect the market. according to CNNSilva and Luna weren’t expecting the size of the edit or the date.

After this conversation, Bolsonaro made a public statement that “everything that is bad can get worse.” Shortly after the president’s speech, Petrobras called a press conference He talked about a possible increase in prices.

When questioned by reporters, Silva and Luna confirmed that there was a price gap charged by Petrobras in relation to international quotations and confirmed that the state-owned company was considering fuel adjustments.

And Petrobras announced, on Tuesday, that the price of diesel would be readjusted by 8.9% at the refinery, as of tomorrow. The average price per liter for distributors increased from R$2.70 to R$3.06 – an increase of R$0.25.

Sources close to Palácio do Planalto explain that Silva and Luna are adopting a different strategy than the former Petrobras president, Roberto Castelo Branco, who ended up being fired by Bolsonaro.

Castelo Branco encouraged a re-fuel readjustment without any kind of dialogue with Planalto, which infuriated the president. Silva e Luna has chosen to explain to Bolsonaro the dynamics of the oil market and that Petrobras managers can respond – including legally – to potential price gouging.

At the time of “petrolão”, Petrobras’ governance was changed and the company signed terms of conduct with the Securities and Exchange Commission (CVM) in Brazil and with the Securities and Exchange Commission (SEC) in the United States.

This strategy of distinguishing itself from its predecessor has delighted Planalto Palace, who sees an alignment between Bolsonaro and Luna e Silva. In the conversations they, according to the allies, made public reports to the President of the Republic, for example, the impossibility of changing the state-owned price policy because it is governed by the international market.

Sources confirm that Bolsonaro agrees, but there is some kind of tacit agreement between them. Bolsonaro is critical of prices, but agrees that Silva and Luna are free to act. Bolsonaro only asks not to be surprised by the oil company’s decisions. Silva e Luna, in turn, asks not to interfere with their work.