Hello! We’re back after the Proclamation of the Republic holiday. Today, senators are considering a bill that would change Petrobras’ pricing policy. Bolsonaro’s decision to join a new party not as clear-cut as once thought.
Senate plans Petrobras intervention
The Senate’s Economic Affairs Committee will begin deliberations today on a bill to alter Petrobras’ pricing policy. Fuel prices of the Brazilian oil giant have been pegged to international rates since 2016, which has led to incredible volatility and sparked a truckers’ strike in 2018.
- Now, with fuels becoming the biggest cause of increasing inflation (more below), politicians want to force the government-controlled company into a change.
Changes. The bill’s author and rapporteur are both members of the center-left Workers’ Party, which has been critical of Petrobras’s internationally pegged pricing policy since its creation. The proposal suggests that prices should reflect the cost of domestic production and must stay within a predetermined range, as well as creating a tax on crude oil exports and a price stabilization fund.
- Last week, the committee passed motions to invite Economy Minister Paulo Guedes, Mines and Energy Minister Bento Albuquerque, and Petrobras CEO Joaquim Silva e Luna to discuss the rapid rise of fuel...