Explaining Brazil #191: Petrobras merry-go-round spins again

Gas station worker changing ethanol prices. Photo: Rivaldo Gomes/Folhapress

The government announced that it would be replacing Petrobras CEO Joaquim Silva e Luna. While the timing of the announcement didn’t seem to be entirely by chance, the switch was weeks in the making. President Bolsonaro had grown furious at Mr. Luna e Silva since Petrobras announced massive fuel price rises on March 10.

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Guest:

Ana Ferraz is a journalist specialized in global affairs and economics. She previously worked at the Italian News Agency ANSA and has been published by multiple Brazilian outlets.
Gesner Oliveira is an economist and holds a Ph.D. from the University of California/Berkeley. He is a professor of infrastructure and environmental solutions at think tank Fundação Getulio Vargas.

This episode used music from Uppbeat. License codes: F18NGPOIMPUVA2EC, ONOPHCAPHF83FGLF, BZZ2TJYQEU3SFXZG.

Background reading:

Even before sacking the CEO of Petrobras, President Jair Bolsonaro was already trying to wield more control over the company, choosing a close ally to become the company’s next chairman of the board.
Brazilians are paying way more for a tank of gas than elsewhere. Amanda Audi compared prices by using the purchasing power parity index.
A combination of economic factors has led Brazilian citizens across the board to feel less well-off than they were a short time ago. And the numbers corroborate this perception.
Listen to Episode #189: Gas prices put Bolsonaro in a bind. Inflation continues to weigh down President Jair Bolsonaro, who is running out of ways to hold prices down.
Listen to Episode #184: Brazil’s risk of imported inflation. Prior to the invasion of Ukraine by Russian troops, we warned that conflict in Europe would impact the Brazilian economy.
Listen to Episode #172: A president’s worst enemy. Inflation was set to hit the 10-percent mark for the first time in five years. And historical data shows that high inflation and a poor economic outlook are bad omens for incumbent presidents.

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Alex Hochuli

Alex is a writer, researcher and consultant based in São Paulo, Brazil. He is host of the global politics podcast, Aufhebunga Bunga, and is currently researching a book on anti-politics.