Petrobras says it is sensitive to fuels, but the market remains volatile

Pressured in recent days to cut fuel prices in the country, Petrobras released this Friday (18) a statement in defense of its pricing policy, in which it signals that the great volatility in the foreign market prevents adjustments at this time.

“Petrobras is sensitive to the impacts of prices on society and maintains daily monitoring of the market in this challenging and highly volatile moment, not being able to anticipate decisions on maintenance or price adjustments”, says the text.

The pressures on the state-owned company’s price policy intensified after the mega-increases announced last week and gained even more strength with the drop in international oil prices earlier this week.

On Tuesday (15), with a barrel below US$ 100, the price of diesel in the country became more expensive than the import parity, a concept used by Petrobras’ pricing policy that considers the cost of importing the products. .

President Jair Bolsonaro (PL) was quick to say that the state-owned company would “certainly” reduce prices. His ally, the president of the Chamber, Arthur Lira (DEM) joined in and demanded cuts.

On this Thursday (17), however, oil rose again and Brazilian diesel was once again behind international quotations. According to Abicom (Brazilian Association of Fuel Importers), at the end of Thursday’s trading session, the difference was R$ 0.40 per liter.

“In recent days, we have seen a reduction in international oil product price levels, followed by a strong increase yesterday,” commented Petrobras, stressing that it still sees a “moment of great uncertainty” and that artificial prices create a risk to supply.

“The unfolding of the war between Russia and Ukraine has an impact on supply, generating competition in the world for the supply of products, which reinforces the importance of prices in Brazil remaining in line with the global market to ensure normal supply and mitigate risks of shortages. of product.”

The company emphasizes that it spent 57 days without readjusting gasoline and diesel in 2022, even in a scenario of high oil prices and that the values ​​​​applied in last week’s mega-increase, “although relevant, only reflected part of the rise in levels international oil prices”.

It also repeats that the movement “was in the same direction as other fuel suppliers in Brazil who, before Petrobras, had already promoted adjustments in their sales prices, and necessary for the Brazilian market to continue being supplied, without risks of shortages, by the different actors responsible for serving the different Brazilian regions”.

The reiterated defense of the fuel price policy put the president of Petrobras, Joaquim Silva e Luna, on a collision course with the Palácio do Planalto, a scenario that has been messing with the company’s shares on the stock exchange in recent days.

Silva e Luna has said that he will not step down, but at the company, the appointment of Flamengo president Rodolfo Landim to head the state-owned company’s board of directors is seen as a step towards yet another change in the presidency in the Bolsonaro government.

In 2021, the President of the Republic fired the first president of Petrobras under his management, Roberto Castello Branco, also in the midst of a crisis over fuel prices. The expectation that Silva e Luna would change the policy, however, was not confirmed.

Petrobras’ statute prevents loss-making operations and requires the government to compensate the company for the eventual adoption of public policies. The text is used by the board of directors to demand respect for the current pricing policy.

“Petrobras follows all the rites of governance and seeks a balance with the market, while avoiding passing on to domestic prices the volatilities of international quotations and the exchange rate caused by conjunctural events”, concluded the state company, in the released note. this friday.