Alert About Risks of Break in Petrobras S.A. Policy in the New Government

After Some Studies, the FGV Researcher Issues a Warning to Petrobras About Its Policy for the Next Government

Regarding Petrobras’ policy, Fernanda Delgado, Researcher at Fundação Getúlio Vargas Energy, seems to have the solution for Brazil’s oil and gas market. She draws attention to the risks of interruption of oil sector policies in the next government. She also states that it is necessary to continue removing the barriers that hinder the entry of new investors and the creation of a more competitive market, with more service competition and primarily on prices.

According to her, “just like other industrial sectors, the energy segment has not been spared from economic swings, regulatory issues, and Brazilian politics. Constant regulatory changes, high percentages of protection for local industry, and the absence of auctions have put Brazil behind in the race for foreign investments and, consequently, in matching the more developed economies.”

Further highlighting the importance of Petrobras’ role as a development stimulus, the company’s investment plan announcements are closely monitored by the market since it is the largest buyer of services and equipment in the country.

She also defends the maintenance of the bidding calendar and the ANP, which is a strong regulatory body to protect national interests. The researcher also notes in the downstream sector that the agenda is the most extensive and arduous as it includes investments in refining, which she identifies as “the imperative need” to bring competition and contention in the natural gas and fuel distribution market.

There should also be an effort to leverage Petrobras’ interest in selling its assets in the refining area to promote the attraction of new private investments and the relaxation of the segment, as well as to monitor the national fuel market, thus inhibiting abusive practices.

The FGV Energia researcher believes that the rectification of tax policy for the gas and fuel market is essential to make it more efficient. Now it is a matter of waiting for good news from Petrobras to confirm this information.

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