Mônica Bergamo: Petrobras advisor proposes 45-day truce to the government to not increase fuel

Petrobras advisor Francisco Petros, elected by the state’s private shareholders, sent this Friday (17) a letter to ministers of Jair Bolsonaro (PL) and the company’s board proposing a 45-day truce in fuel price adjustments.

One of the fundamental conditions for the agreement to take place, however, would depend on the federal government’s commitment to maintain the company’s current governance. According to Petros, the recent changes in the command of Petrobras represent “a factor of enormous instability for the management of the company and for the very solution of the issue of increases”.

The document was released with a copy to other directors hours after Petrobras announced adjustments of 5.2% in the price of gasoline and 14.2% in the price of diesel, stating that the oil market has undergone structural change and that it is necessary to seek convergence with international prices.

In the letter sent to the ministers of Mines and Energy, Adolfo Sachsida, and of the Civil House, Ciro Nogueira, the counselor says that the turbulent environment involving the company is due, in addition to the effects of the war between Russia and Ukraine, to the communication of the government and the measures adopted in relation to Petrobras.

The second condition suggested for the truce is the formation of “a working group with all the agents of the fuel market and members of the government” to formulate strategies that “allow the functioning of the market on a sustainable basis for the country and the companies”.

The collegiate would commit to presenting results within 45 days — and during that period, prices would be frozen.

“We believe that what is proposed here can restore a healthy environment for Petrobras’ institutional relationship with its main shareholder, as well as restore normality in management in the search for useful solutions for Brazil, its institutions and society, companies and all Petrobras stakeholders”, he writes.

According to Francisco Petros, the initiative to reduce the tax burden on fuels through ICMS is commendable, but “unfortunately it does not solve the effects of rising oil prices on Petrobras’ production and business chain.”

“We are verifying that there is a notable misunderstanding about the concrete need for Petrobras to practice prices that allow the maintenance of supply in an environment of healthy market functioning, the profitability of its assets, the payment of taxes and the achievement of its results” , says the counselor.

Petros also highlights that the country’s situation is challenging and its impacts on fuel prices are enormous, especially for the most vulnerable part of the population. “It spreads through the dangerous economy of escalating inflation, whose effects are not likely to be stopped in a relatively short term”, he says.

After the announcement of the increases, Petrobras shares fell about 9.17% around 2 pm this Friday, pushing the Stock Exchange to the bottom and worsening the close of an already negative week for the stock market in the face of the all-time high. interest in the United States.

Criticism from politicians to the increase in fuel prices applied by the company weighed on the performance of the company’s roles in this session.

This Friday, President Jair Bolsonaro called Petrobras’ new adjustment “betrayal to the Brazilian people” and said that he is articulating with the Chamber of Deputies the creation of a CPI (Parliamentary Commission of Inquiry) to investigate the company’s direction. .

The current president of the state-owned company, José Mauro Coelho, was nominated for the position by the government to succeed Joaquim Silva e Luna – fired by Bolsonaro for readjusting the company’s prices.

After 99 days without increases, the average price of gasoline at the state-owned refineries will rise from R$3.86 to R$4.06 per liter. The price of diesel will go from R$ 4.91 to R$ 5.61 per liter. The last adjustment occurred 39 days ago.

On Thursday (16), the company’s board of directors rejected the government’s request to avoid readjustments, arguing that the definition of prices is the responsibility of the executive board. The meeting had been convened at the request of the Chief of Staff, Ciro Nogueira.

The request was the government’s last gambit to try to avoid the increase amid an effort to pass a package of measures to try to reduce prices, which, according to President Bolsonaro, could lower gasoline and diesel prices by R$2 and R$ 1 per litre, respectively.

Bolsonaro also said on Friday that Petrobras “can plunge Brazil into chaos”. “Its president, directors and advisers are well aware of what happened with the truckers’ strike in 2018, and the disastrous consequences for Brazil’s economy and the lives of our people.”

The president of the Chamber, deputy Arthur Lira (PP-AL), told the Sheet that “goes to the dick” to “review all prices” of fuel. He also defended the resignation of the president of Petrobras and said he will work to tax the oil company’s profit.

“I called Zé Mauro [presidente da Petrobras] yesterday [quinta, 16]. I asked him not to give a raise, [disse]: ‘you are working against, what is expected of Petrobras is something else’; and I said I was going to do a job to fire him, I’m going to propose with the government to tax Petrobras’ profits. He [respondeu]: ‘not quite, is the advice [de administração]I’m not postponing my departure,'” said Lira.

_{with BIANKA VIEIRA, KARINA MATIAS and MANOELLA SMITH}