Bolsonaro Discusses New Fuel Price Hike at G20

Written by Daiane Souza

Published on 02/11/2021 at 07:32

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On his trip to the G20 summit, President of the Republic, Jair Bolsonaro, addressed a new increase in prices in Brazil regarding fuels such as diesel and gasoline. The accumulated increase is already around 50%. During the trip to Rome, Italy, he also spoke again about the possibility of privatizing the state-owned company Petrobras by 2022. The desire for closure and sale is not only Bolsonaro’s but also shared by other Brazilian politicians like João Dória, the governor of São Paulo, who recently also mentioned the possibility of selling the Bank of Brazil, BB.

In the same meeting, the President of the Republic stated that he intends to join a party this year. However, despite uncertainties regarding the matter, one of the options could be the Republicans. The PP and PL are also in this race. Regarding the elections in 2022, Dória is expected to run, along with Pacheco, the current President of the Senate.

Petrobras Privatization: Is It Good or Bad?

This may depend on the point of view. Liberals argue that it could be a good way to pay Brazil’s external debt, which has already reached over R$ 5.4 trillion, equivalent to about 80% of GDP, Brazil’s Gross Domestic Product. On the other hand, leftist groups argue that the state-owned company would be a good way to “keep the money coming in” and ensure the country’s subsistence. Furthermore, the federal government has already initiated some processes on the matter: in 2021, some Petrobras units were already sold while the brand had to start paying for rent.

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New Fuel Price Increase

As mentioned earlier, the president addressed the possibility of a new fuel price increase at the G20 summit. In at least seven Brazilian states, the price of a liter of gasoline is already over R$ 7. In Santa Catarina, a state where the truck drivers’ strike was banned by the STF, the Supreme Federal Court, the price could exceed R$ 8 by the end of the year. Currently, the average is R$ 6.50.

Acre, Rio de Janeiro, and Rio Grande do Sul are the states that are experiencing the most significant increases so far. Pacheco, the President of the Senate, recently stated he would meet with Petrobras President, Luna e Silva, to discuss the current pricing policy and think about ways to address the instability.

Bolsonaro Discusses New Fuel Price Hike at G20

Petrobras Privatization: Is It Good or Bad?

New Fuel Price Increase

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