Bolsonaro wants to ‘slice up’ Petrobras; understand

key points

  • Jair Bolsonaro says privatization of Petrobras could take a few years;
  • President criticizes system adopted by the state-owned company;
  • MME formalized a request to insert a company into a program that could result in privatization.

The president Jair Bolsonaro defended that Petrobras be “sliced” in a privatization process. According to him, the privatization process would take approximately four years. The statements were made in an interview with presenter Ratinho’s radio program, released this Tuesday (31).

Bolsonaro wants to ‘slice up’ Petrobras; understand (Image: Assembly/FDR)

According to the president, the Petrobras division could facilitate the sale of the company. Jair Bolsonaro said that “the privatization of Petrobras takes at least four years”. “I have the idea of ​​slicing up Petrobras. It’s really not working out right now.”.

Amid concerns about the impact of fuel prices on the government’s popularity, the president called the state-owned company a “Petrobras Football Club”. This is due to the supposed interest only in profit, to the detriment of the high cost of living for people.

According to Bolsonaro, “although its social character is in the Constitution, it does not apply”. The Chief Executive says that Petrobras “It has a phenomenal profit. It does not compare, in percentage terms, with other oil companies around the world”.

The President of the Republic claimed that the company can “break Brazil” continue to raise fuel prices.

“Fuel is the inflation belt. We are forced to buy gasoline and diesel outside Brazil, which helps to make the price more expensive”considers.

Bolsonaro criticizes Petrobras’ international parity system

According to the president, the company cannot continue to use international price parity. This system links the readjustment of fuel prices to the variation of the barrel of oil in the foreign market.

Bolsonaro highlights that “nobody wants to interfere, nor will they interfere with prices”. Despite this, he claims that “Petrobras cannot continue using international price parity — as we are self-sufficient, we are not refining —, always passing this on to the people”.

President criticizes Petrobras minority shareholders

O president also recalled the net profit of Petrobras. In the first quarter of this year, the company recorded a gain of R$ 44.5 billion. Amid this scenario, Bolsonaro criticized the company’s minority shareholders.

“The papers were sold during the Lula government. Of these R$44 billion in profit, around 40% go to minority shareholders. And approximately R$ 6 billion per month goes outside Brazil, a considerable part of it, to the pension fund outside Brazil”declares.

“In other words, these people don’t care if Brazil has a problem or not. Want profit”complete.

Bolsonaro has been criticizing fuel price readjustments by Petrobras
Bolsonaro has been criticizing Petrobras’ fuel price readjustments (Image: FDR)

Possibility of including Petrobras in a program that could result in privatization

This Monday (30), the Ministry of Mines and Energy formalized, to the Ministry of Economy, the request to add Petrobras to the Partnership and Investment Program (PPI) portfolio. This is the initial phase for the process of a possible privatization of the company.

In a note, MME declares that the company’s inclusion in the PPI Visa “initiate studies for the proposition of actions necessary for privatization of the Company, which will be produced by an inter-ministerial committee to be established between the Ministry of Mines and Energy and the Ministry of Economy”.

According to the folder, the proposal is timely in this situation. This is due to the global energy market conditions, “in light of the global geopolitical situation, discussions on the pace of the energy transition and the global realignment of investments”.

The MME still argues that the privatization process of the company is essential “attracting investments to the country and for the creation of a plural, dynamic and competitive market, which will promote efficiency gains in the energy sector and a vigorous generation of jobs for Brazilians”.

To Record News, the president of the Chamber, Arthur Lira, pressured, once again, the government to send a bill to Congress for the sale of part of Petrobras shares. In this way, the Union would no longer be the company’s majority shareholder.

Lira considers it not possible to privatize the company now. Despite this, he declares that “We will now be able, if the government commands, to sell part of Petrobras shares, subsidized by a simple majority bill, in the National Congress, and the government will no longer have a majority”.

Silvio Souza

Silvio Suehiro Souza has a degree in Social Communication – Journalism from the University of Mogi das Cruzes (UMC). Since 2019 he has been writing the FDR portal, where he has accumulated experience and vast knowledge in the area related to economics, finance and investments. In addition, Silvio produces analyzes on financial products and services, always striving for impartiality and reliable information.