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Montevideo, December 3rd 2021 - 18:48 UTC



Bolsonaro now wants Petrobras privatized

Friday, October 15th 2021 - 01:27 UTC
Full article 59 comments
The President complained he was blamed for the rise in the price of fuel  The President complained he was blamed for the rise in the price of fuel

Brazil's President Jair Bolsonaro Thursday hinted he might put the national oil company Petrobras up for sale after being criticized for an increase in the price of fuel. During the 2018 presidential campaign, the retired Army Captain said he would only privatize it “if there was no other solution.”

Meanwhile, Economy Minister Paulo Guedes would have no objections against selling some Petrobras stock over to private hands, according to his statements from the United States where he is participating in International Monetary Fund (IMF) and World Bank conferences. Petrobras, a state-owned company with open capital that is listed on the New York and San Stock Exchanges. Pablo.

“I already want to privatize Petrobras; I want to. I'm going to see it with the economic team, see what we can do. What happens? I can't control the price of fuel, but when it increases it's my fault. Cooking gas increases? The fault is mine!,” said the head of state in a radio interview in the state of Pernambuco, during which he vowed to stay away from Petrobras' price policy.

Economy Minister Paulo Guedes had pointed out Wednesday that it would be a wise move for the Government to sell shares of the state oil company and funnel part of the profits to the most vulnerable population, it was reported.

According to the National Broad Consumer Price Index (IPCA), gasoline went up 39.6% YoY in September and gas 34.67%. Twelve-month inflation stood at 10.25% in September, reaching double digits for the first time since 2016.

“Can I interfere with Petrobras? I can, but I must not. If I interfere, I will be responsible for a crime of liability,” said the president.
During the interview, Bolsonaro also brought up inflation and said that if his government “had not done anything”, it “would have tripled.”

Petrobras head Gen. (Ret.) Joaquim Silva e Luna, whom Bolsonaro appointed in February after sacking Roberto Castello Branco, ratified the company's policy, which adjusts the cost of fuel taking into account the exchange rate of Brazil's real against the US dollar in addition to the international price of a barrel of oil. The increase in the price of fuel and diesel is one of the items pumping up inflation. Last Friday Petrobras rose the price of gasoline by 7.2%.

Silva e Luna was president of the Itaipu hydroelectric dam and is a man of confidence of Bolsonaro.

Regarding the economic hardships Brazil is going through, Bolsonaro claimed others faired worse: “Just look at how the rest of the world is doing in terms of inflation and shortages.”

Top Comments

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  • Brasileiro

    Weak government! The Brazilian right is just corrupt. It was never competent.

    Oct 15th, 2021 - 12:00 pm 0
  • Liberato

    I totally agree with what Terence said. Petrobras was never more valuable than under the Lula government and the pre-salt discoveries. The same with Odebrecht. You should see how corrupts are Siemmens, General Electric, HP, Alstom, etc. There is no news that their respectives governments protect them. It is no excuse however, to corrupt governments officials in order to gain contracts. They should be investigated for corruption scandals, as all the corporations in the same sector. But not under a political fight, but as a transparency policy.
    The case with Chile and Pinochet. In a time of a profused use of copper, the state company Codelco is one of the main reason that explain the grow in the government's income. If Pinochet would not have made the “marxist” move to keep the company. The private sector would not be much of a different today.
    Anyway, the “Marxist criminal Lula da Silva”, made Brasil grow at levels never known by them in the economy (surpasing the economy of the UK), as in the political field in the world.
    Im not a marxist, nor a communist, nor a socialist. Having said that, i still consider Pinochet and all the military dictatorships state terrorists. There is not an antagonism concept between Pinochet and marxism, communism, etc. Capitalism might be an antagonism of those concepts, or liberalism. And i dont think even your british friends here would like to be under his rule ever. Beside all the compliments and help they gave him.
    If you think that the USA or european support for our dictators were becouse they liked those kind of dicatorial governments, you are living in another world. They liked (in many cases not all) those governments for us.

    Going back to the topic. It looks like under the “marxist” governments, the foreign debts were fewer and the companies values were higher. How weird, isnt it?.

    Oct 16th, 2021 - 12:10 am 0
  • Chicureo

    L I B E R A T O

    Actually we are blessed of the assistance of Venezuelans that have a parallax opinion about Marxism and the socialist utopia they’ve escaped from.

    Imagine they have more petroleum reserves than Saudi Arabia and the current market is USD80 a barrel — yet the populace live as poor as Cubans!

    Lula and his corrupt PS party looted billions from Brazil’s wealth.

    In 1970 we too experienced the Marxist nightmare of Allende’s Unidad Popular that destroyed our economy — including stealing a large part of our family farmland.

    Despite our problems — Chile today is the economic and progressive success of our continent which is the result of our the free market philosophy of Chile — conceived by the Chicago Boys strategy under the guidance of the great Milton Friedman!

    For over two decades our country has been a successful democracy and I remain very thankful for Pinochet saving our country.

    ¡Saludos cordales desde Panquehue!

    Oct 16th, 2021 - 12:47 am 0
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