Brazil: Congress’ most powerful voting bloc threatens “war” against Petrobras

RIO DE JANEIRO, BRAZIL – Representatives and senators from Centrão are threatening to start a “legislative war” against Petrobras after announcing a new increase in the value of diesel and gasoline.

These congressmen have already listed two agendas they intend to advance:

• They demand the immediate resignation of Petrobras’ CEO, José Mauro Ferreira Coelho;
• They threaten to break the monopoly of the state-owned company quickly.

The idea has gained momentum mainly due to the timing of the approval of the new increase. On Wednesday, June 15, Congress limited the collection of VAT taxes by the states on fuel, electricity, telecommunication services, and public transportation to 17%.

Petrobras’ decision was seen as a political provocation since it hinders the objective of generating well-being among voters and showing that Congress is doing something for the people.

“Petrobras, when it needs to be a public company, to benefit from the Treasury, it is. Now, we have taken an important measure to lower consumer prices, and it threatens to increase them,” said Federal Congressman Danilo Forte (UB-CE), president of the Parliamentary Front for Renewable Energy and author of PLP 18, which established the ceiling for ICMS.

“It’s time to break the de facto monopoly of Petrobras. We have to face this debate – Petrobras cannot sell oil to China cheaper than it sells to our refineries. It has to be fought,” he said.

The political wing of the government, led by the chief minister of the Civil House, Ciro Nogueira (PP-PI), also demands the resignation of Petrobras’ CEO so that the new nominee, Caio Paes de Andrade, can assume the post.

There is hope that he will have more politicized management of the state-owned company, allowing fewer increases in the election year.

The main criticism of this group has to do with the profits that Petrobras posted last year. Just in dividends to the Union, R$31.5 billion (US$6.1 billion) will be paid from May to July.

CHAMBER’S PRESIDENT ACCUSES PETROBRAS’ MANAGEMENT OF “CORPORATE TERRORISM”

On Friday, June 17, the Chamber president, Arthur Lira (PP-AL), called for the resignation of the president of Petrobras, José Mauro Ferreira Coelho.

“The president of Petrobras must resign immediately. Not because of my personal desire, but because he does not represent the majority shareholder of the company – Brazil – and, worse, works systematically against the Brazilian people in the worst crisis in the country,” Lira posted on his Twitter profile.

“He only represents himself, and what he does will leave a legacy of destruction for the company, the country, and the people. Get out!!! For his management is an act of corporate terrorism.”

On Friday, June 17, Petrobras announced a readjustment in diesel and gasoline prices. The price of gasoline will go from R$3.86 to R$4.06 per liter. Diesel will go from R$4.91 to R$5.61 per liter.

The percentage increase for gasoline was 5.18%. Diesel was 14.26%. The new values go into effect on Saturday (June 18).

On Thursday, June 16, Lira had already criticized Petrobras for possibly increasing fuel prices. In his Twitter profile, he compared the state-owned company to an “independent country,” stating that the company is “in a declared state of war with Brazil and the Brazilian people” for the readjustment of fuel prices in 2022.

With information from Poder360