Petrobras goes against Bolsonaro on fuel price cuts

petrobras gas prices
Photo: SL Chen/Shutterstock

In an official statement to the market, Brazil’s oil and gas giant Petrobras went against President Jair Bolsonaro and said the company has made no decision to reduce its fuel prices to distributors. Mr. Bolsonaro told the press on Sunday that the company would start to lower its prices this week — which since 2016 have been pegged to international oil rates.

“Petrobras does not anticipate readjustment decisions and reinforces that there is no decision taken by its Executive Group of Market and Prices (GEMP) that has not yet been announced to the market,” the company wrote.

Twelve-month fuel inflation reached 45 percent in October and helped push the overall consumer prices index to almost 11 percent. In recent months, Mr. Bolsonaro has tried to scapegoat governors for high prices at the pump, claiming that state-level taxes are to blame.

Since October 25, when Petrobras last changed its prices, Brent oil prices have dropped over 16 percent, which could lead to lower rates domestically.