Brazil’s Bolsonaro fires Minister Bento Albuquerque over high diesel prices

RIO DE JANEIRO, BRAZIL – After challenging the Brazilian president with another diesel price hike, the bosses of state-owned Petrobras are now getting a short leash.

President Jair Bolsonaro (PL) has dismissed the Minister of Mines and Energy, Admiral Bento Albuquerque. The new minister is economist Adolfo Sachsida, 49, head of the Special Advisory Office for Strategic Affairs of the Ministry of Economy and a candidate of Paulo Guedes.

The move was published in Wednesday’s (11) edition of Diário Oficial da União. Here is the full text.

To the outside world, Bento Albuquerque left office “at his request,” as is usual in such cases. In reality, the current ex-minister was removed from office because he disagreed with Bolsonaro when he pressured Petrobras not to raise fuel prices.

This week, the state-owned company raised the price of diesel by 8.9% at its refineries. Thus, the average value per liter increased from R$4.51 to R$4.91. The last adjustment was made 60 days ago, on March 11, when the company increased fuel prices by almost 25%.

The oil company’s decision has a direct impact on the inflation rate and Bolsonaro’s plans to be re-elected in October.

OBSTACLE AT PETROBRAS

In his latest live broadcast Thursday (5), Bolsonaro called Petrobras’ profits “rape” and urged the state-owned company not to announce new fuel price adjustments.

“If there is another increase in fuel prices in Brazil, the country could break,” the president said.

Petrobras reported a net profit of R$44.5 billion in the first quarter of 2022. The amount was 3,718% higher than the R$1.17 billion recorded in the same period of 2021.

“You cannot, Minister Bento Albuquerque and Mr. José Mauro of Petrobras, increase the price of diesel. This statement takes into account the abusive profit you have made. You cannot break Brazil,” he said.

“This is now an appeal: Petrobras, don’t break Brazil, don’t increase the price of oil. You make profits, you have fat and the social role of Petrobras is defined in the Constitution,” Bolsonaro criticized in the same live broadcast.

The number of Brazilian families in extreme poverty registered in the country’s CadÚnico (Unified Registry) will increase by 11.8% by 2022.

But not only has the impoverished population increased in Brazil. Just a few days ago, it was announced that more than 50% of all households in the country must now be considered poor.

Often they are working poor. They maybe have a house, a car, furniture – all on credit – but they can no longer drive around and eat only the cheapest food, if at all regularly.

On May 6, Brazil’s National Association of Urban Transport Operators NTU warned of the risk of service disruption if another increase in the price of diesel is confirmed. A total of 43 million passengers rely on the service every day.

According to a poll conducted by PowerData between April 24 and 26, 67% of the Brazilian population supports government intervention at Petrobras to lower fuel prices.