Brazilian oil and gas giant Petrobras will elect a new board of directors on April 13. The personnel change happens at a moment of intense pressure — as Brazilians feel the acute pinch of skyrocketing fuel prices. A standard 50-liter gas tank currently costs a third of the minimum wage in some cities, and President Jair Bolsonaro continually lambasts the company for pegging prices to international oil rates.
With the election looming in October, the president knows that high fuel prices will hinder his chances of winning a second term. While Mr. Bolsonaro has refrained from ostensibly interfering with Petrobras (to avoid violent market reactions), the government is trying to tighten its grip on the company behind the scenes.
Mr. Bolsonaro plans to appoint a new chairman to the board of Petrobras — Rodolfo Landim, who is the current president of Flamengo football club, and an engineer who worked for 26 years in Petrobras. Mr. Landim also served as CEO of BR Distribuidora, an oil distribution company formerly owned by Petrobras from 2003-2006.
The appointment should pass with ease — but, it’s laden with controversy.
Analysts worry that the government will try to use Mr. Landim to interfere with Petrobras pricing policy. In recent days, gasoline prices at the pump have gone up by an average of 8.7 percent, following the company’s decision to bump gasoline, diesel, and liquefied petroleum gas (LPG) prices by 18.7, 24.9, and 16 percent, respectively.
The president...
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