Petrobras CEO resisting pressure from Bolsonaro to resign: sources By Reuters

© Reuters. FILE PHOTO: A man walks past the headquarters of Brazilian oil company Petrobras in Rio de Janeiro

By Rodrigo Viga Gaier

RIO DE JANEIRO (Reuters) – The chief executive of Brazil’s state-led oil company Petrobras is resisting pressure from President Jair Bolsonaro to resign following tensions over rising fuel prices, two sources with direct knowledge of the matter told Reuters.

Roberto Castello Branco was appointed CEO of Petroleo Brasileiro SA, as the state-controlled firm is known, when Bolsonaro took office at the start of 2019, and he has dealt periodically with the president’s complaints about prices.

While Bolsonaro has expressed sympathy for truckers threatening to strike over higher diesel prices, Castello Branco said their complaints are not the company’s problem and insisted that Petrobras will set prices independently of political pressure.

“He won’t give in and he does not plan to leave,” said one of the sources, who requested anonymity to discuss sensitive matters. “There was a time when the board of directors was pro-government, and now it’s independent.”

On Thursday, Bolsonaro signaled his dissatisfaction with the Petrobras CEO during an announcement about lower fuel taxes.

“The head of Petrobras said a few days ago: ‘I don’t have anything to do with truckers.’ That’s what he said, the head of Petrobras. That’s going to have a consequence obviously,” Bolsonaro said during a live video chat after markets closed.

Petrobras has been raising fuel prices since a Reuters report on Feb. 5 disclosed details of its revised pricing policy, which led analysts to downgrade the company’ shares on concerns of possible political interference.

“I can’t and wouldn’t interfere at Petrobras – even if something will happen at Petrobras in the coming days,” Bolsonaro said on Thursday. “Something needs to change. It will happen.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.