Finding buyers for refineries put up for sale by Brazil’s government-controlled oil major Petrobras was already deemed a difficult task for 2022. Now, however, increased political pressure to change Petrobras’s pricing policy has once again increased investors’ perception of risk regarding the company’s assets.
Sources say that discussions were held last week by the government regarding the creation of a fuel subsidies program and a temporary freeze in Petrobras prices. These prices are currently linked to international rates. While neither of these alternatives moved forward, President Jair Bolsonaro himself noted on Saturday that he has not discarded the idea of subsidies, “if they are necessary, so Brazil’s economy doesn’t stop.
The increase in gasoline and diesel prices last Friday after 57 days without rate changes by Petrobras may give an indication to the market about the company’s independence. Investors were concerned that the government might interfere with the price hike, as evidenced by the fact that there were several meetings with Petrobras prior to it.
Fear that the process for opening up could lead to a reversal of fortunes. refiningThe country’s progress will be hampered if LuizIncio Lula Da Silva wins the October presidential election. Lula has openly stated that he intends to end the oil company’s current pricing policy, which is necessary for private importers and refiners to continue operating in the country.
Petrobras had pledged in 2019 to sell eight refineries by 2021. Only one of the eight refineries has been sold so far for USD 1.8 billion. The oil and natural gas company also signed two additional contracts with the Atem-F&M groups, but no sales have been made.
