This week, we examine the negative knock-on effects of Jair Bolsonaro’s interference in Petrobras. The northern state of Acre faces a perfect storm of floods, epidemics, and a migrant crisis.
The hand on Petrobras is not invisible
Petrobras, Brazil’s state-controlled oil and gas firm, is under military intervention. On Friday evening, President Jair Bolsonaro announced his administration is pushing for a change in the company’s leadership — replacing CEO Roberto Castello Branco with retired Army General Joaquim Silva e Luna, who was at the helm of the massive Itaipu dam.
What’s behind the move. Mr. Bolsonaro was growing frustrated with the company’s pricing policy, which pegs diesel and gasoline to international rates. For the president, the straw that broke the camel’s back was a third bump in fuel prices this year, making diesel and gasoline 28 and 35 percent more expensive, respectively, since January 1.
- Amid a generational crisis and with an ailing economy, fluctuations in gas prices have become even more inconvenient for consumers — especially as the pandemic has stimulated individual transportation.
- In his first words as soon-to-become Petrobras CEO, Mr. Silva e Luna said the company “must care for shareholders, but also for Brazilians,” hinting at...