The new CEO of Brazil’s state-run oil company Petrobras announced on Friday that he intended to change the nation’s fuel price policy, but assured investors that they shouldn’t be concerned.
On Friday, Senator Jean Paul Prates was named the new CEO of Petroleo Brasileiro SA by President-elect Luiz Inacio Lula da Silva. Prates will ‘lead the company into a great future,’ Lula wrote in a tweet.
Prates told reporters that the company’s pricing strategy, which currently links fuel prices to oil prices around the world, will change. However, he made clear that this does not mean that prices will be entirely divorced from the global market.
Petrobras will change its pricing strategy, but not necessarily for the worse, he said. It will change as a result of changes in national policy.
The company’s pricing strategy was the source of conflict under President Jair Bolsonaro’s leadership. During his administration, three Petrobras CEOs were fired because rising fuel prices fueled inflation and damaged his standing.
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