Shares in Brazilian oil company
Petrobras plummeted more than seven percent Monday after President Jair
Bolsonaro criticized the organization’s pricing policy in the face of rising
crude prices due to the war in Ukraine.

The far-right leader, who has a habit of targeting the state-run company
every time it raises prices, said that the “parity with the international
price” of oil “cannot continue,” in an interview with a radio station in the
northwestern state of Roraima.

The drop in share prices, due to the nervousness of investors, led to the
fall of the Ibovespa index, the main index on the Sao Paulo Stock Exchange.

Ibovespa was down 2.52 percent at close.

Bolsonaro met with specialists Monday afternoon to discuss a solution to
the expected effect on fuel prices — which are estimated to rise 30 percent
— in the context of skyrocketing international oil prices following Russia’s
invasion of Ukraine.

The Brazilian president is seeking to stop Petrobras from raising prices
for Brazilian consumers before the October elections, when Bolsonaro will
seek reelection.

Brent North Sea crude for May delivery was up 4.31 percent to $123.21 per
barrel on Monday.

West Texas Intermediate crude, the other market benchmark, was up 3.21
percent to $119.40.

The Brazilian government is evaluating different options, including asking
Petrobras shareholders to suspend price adjustments during the Ukraine war;
withdrawing certain federal taxes; or a possible fuel subsidy, which would
add to already high public spending.

In 2021, fuel prices rose nearly 50 percent, bringing overall inflation in
Brazil above 10 percent, the highest rate since 2015.

facebook sharing buttontwitter sharing buttonmessenger sharing buttonwhatsapp sharing buttonsharethis sharing button