Company looked at families’ suffering, says Petrobras president after Bolsonaro’s criticism

The president of Petrobras, General Joaquim Silva e Luna, told sheet that the fuel price readjustments took place in the context of two continuous “wars” and took into account the suffering of poor families and the country’s economy.

Since the announcement of the readjustments for the distributors, last Thursday (10), the general has been criticized by Palácio do Planalto.

On Saturday (12), President Jair Bolsonaro (PL) said: “Petrobras demonstrates that it has no sensitivity towards the population.

Silva e Luna was appointed by Bolsonaro to command Petrobras. The nomination is just over a year old.

The mega-increase announced by Petrobras was 18.8% in the price of gasoline, 24.9% for diesel and 16.1% for cooking gas sold to distributors.

“In the context of two ongoing ‘wars’ (Covid and Eastern Europe), the company’s analysis was much more sensitive and other variables entered the equation (all considering the suffering that the poorest families are already going through and the country’s own economy )”, said Luna to sheetby message, on the afternoon of this Monday (14).

The president of Petrobras refers to the pandemic and the war between Russia and Ukraine, caused by the invasion of the first country into the second.

The report questioned whether the readjustments were dealt with in any way at the meeting that took place at Palácio do Planalto on Tuesday (8), in the face of notes of lag in fuel prices, even with the increases practiced afterwards. The president of Petrobras, government ministers and the president of the Central Bank, Roberto Campos Neto, participated in the meeting.

“I don’t deal with anyone about price adjustment. This issue is technically dealt with within the company,” said the general.

The state-owned company stayed 57 days without touching the prices of gasoline and diesel. The last adjustment had taken place on January 12. In the case of cooking gas, it was the first readjustment after 152 days.

Abicom (Brazilian Association of Fuel Importers) estimates that fuel prices remain lagged, mainly due to the consequences of the war between Russia and Ukraine.

The president of Petrobras declined to comment on Bolsonaro’s criticisms or prospects for staying in office.

The chief executive sees the price of gasoline, diesel and cooking gas as a complicating factor for his reelection campaign. The president’s speeches are calculated in this sense and seek to dissociate his responsibility from the impact of these prices on inflation.

In his public criticisms, Bolsonaro expressed discomfort with the fact that the announcement of the readjustments took place before Congress passed a bill that cut taxes on diesel. The text zeroed the federal taxes PIS and Cofins on fuel and limited the collection of ICMS.

The president has a habit of saying that he does not interfere with Petrobras and that he only gives tips to Silva and Luna. “These are just suggestions,” he said on Saturday.

Asked about the possibility of dismissing the general, Bolsonaro said: “Everyone has the possibility of being replaced, except the vice president and the president of the Republic.”

When he was appointed to the position, in February 2021, Silva e Luna denied the possibility of Bolsonaro’s interference in the state-owned company. “There will never be any interference from the president,” the general told sheet on the 20th of that month.

At that moment, still without confirmation of the appointment to the position of president by the Board of Directors of Petrobras, Silva e Luna stated that “a company is in the middle of society”, in the sense that it cannot be immune to social demands. “The king who lives in the castle, when he leaves the castle, he will walk in the street,” he said.

The readjustments in fuel prices came into force on Friday (11). According to the CBIE (Brazilian Infrastructure Center), these were the largest increases since the current pricing policy, which began in 2016, came into force.

This policy is based on the values ​​practiced in the international market, in which the PPI (import parity price) is a reference.

With an eye on the electoral dispute, Bolsonaro has publicly complained about this pricing policy. He said that Petrobras’ profit is “absurd” and that the moment is “atypical” in the world, in reference to the war waged by Russia.

In 2022 alone, the price of gasoline sold by Petrobras accumulates a rise of 24.5%. That of diesel, 35%.

For Vice President Hamilton Mourão, likely excluded from Bolsonaro’s ticket in the reelection race, Silva e Luna is “resilient” and “withstands pressure”.

“Price intervention is something we know how it starts and when it ends it’s always a mess,” said the deputy, who is also a reserve general.