Petrobras CEO resisting pressure from Bolsonaro to resign – sources

RIO DE JANEIRO, BRAZIL – The chief executive of Brazil’s state-led oil company Petrobras is resisting pressure from President Jair Bolsonaro to resign following tensions over rising fuel prices, two sources with direct knowledge of the matter told Reuters.

Roberto Castello Branco was appointed CEO of Petroleo Brasileiro SA when Bolsonaro took office at the start of 2019, and he has dealt periodically with the president’s complaints about prices.

While Bolsonaro has expressed sympathy for truckers threatening to strike over higher diesel prices, Castello Branco said their complaints are not the company’s problem and insisted that Petrobras will set prices independently of political pressure.

“He won’t give in and he does not plan to leave,” said one of the sources, who requested anonymity to discuss sensitive matters. “There was a time when the board of directors was pro-government, and now it’s independent.”

On Thursday, Bolsonaro signaled his dissatisfaction with the Petrobras CEO during an announcement about lower fuel taxes.

“The head of Petrobras said a few days ago: ‘I don’t have anything to do with truckers.’ That’s what he said, the head of Petrobras. That’s going to have a consequence obviously,” Bolsonaro said during a live video chat after markets closed.

Petrobras has been raising fuel prices since a Reuters report on Feb. 5 disclosed details of its revised pricing policy, which led analysts to downgrade the company’ shares on concerns of possible political interference.

“I can’t and wouldn’t interfere at Petrobras – even if something will happen at Petrobras in the coming days,” Bolsonaro said on Thursday. “Something needs to change. It will happen.”

Source: Reuters