Who runs Petrobras and what influence can the government have on fuel prices?

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As the majority shareholder of Petrobras, the Brazilian government has the prerogative to appoint the majority of the members of the board of directors who dictate the course of the business

The resignation of José Mauro Coelho as president of Petrobras, announced on Monday (20/6), raised many doubts about how the company’s management works and how far the federal government’s influence on fuel price policy goes.

In summary, Petrobras has a board of directors, whose members are elected by the shareholders.

The federal government, as it owns 50.3% of the company’s shares (that is, it is the majority shareholder), has the power to appoint most of the directors – who, in turn, have the prerogative to choose who will be the president of Petrobras and the company’s seven executive directors.

It is precisely this group of professionals — most of whom are directly or indirectly appointed by the government itself — who define the fuel price policy and eventual adjustments.