If Elected, Lula Says Dollar Will Not Be Used As A Basis To Set Gas Prices In Brazil, As Currently Practiced By Petrobras

Former President Lula, who is also expected to run in the 2022 presidential elections, spoke on Twitter about changing the gasoline prices practiced by Petrobras.

Lula used his official account on the social network to say that gasoline prices will not be dollarized, as is currently practiced by Petrobras. In the post, he stated that in an eventual government, “I cannot enrich the shareholder and impoverish the homemaker,” posted the former president.

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The worker still has not officially announced his pre-candidacy for the presidency, but the discourse about intervening in the gasoline pricing policy is another proof that he will be present in the race for the command of the Planalto Palace at the end of the year.

In fact, fuel prices in general have been a constant topic of discussion in Brazil’s political arena this year. The frequent increases at the gas stations, especially for gasoline, diesel, and cooking gas have caused inflation to soar, reducing the purchasing power of Brazilian families.

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In this vein, Lula supplemented his post about gasoline prices, stating that the dollar will not be a parameter for Petrobras to set its prices.

“We will not maintain the dollarized gasoline price. It is important that the shareholder receives their dividends when Petrobras makes a profit, but I cannot enrich the shareholder and impoverish the homemaker who goes to buy a kilogram of beans and pays more due to gasoline,” affirmed the worker.

Impacts of Gasoline and Other Fuel Prices on the Planalto Palace

The Federal Government is in a hurry to find a solution that minimizes the negative impacts that the rise in fuel prices has brought to Jair Bolsonaro’s administration image. This year is election year, and the pace is already one of pre-candidacy.

But Petrobras has claimed that it only practices international prices. As oil prices rise, the price of gasoline and other derivatives also increases.

Petrobras also argues that political interference in fuel prices could lead to a disorganization of the company. This has already occurred in previous governments.

This week, Petrobras’ Executive Director of Institutional Relations and Sustainability, Rafael Chaves, was called by Jair Bolsonaro for a speech during the ceremony that marked the beginning of operational tests of the GasLub Pole at the old Comperj.

On that occasion, Chaves strongly criticized the Workers’ Party and praised the current Federal Government. “I will not shy away from giving my testimony of the mismanagement and corruption that was installed in this company during the PT administration. Here in our uniform, it is written ‘protection against fire and electric shock’; it should have ‘protection against corruption’ that was practiced at that time,” he said, pointing to his uniform.

Petrobras Pricing Policy vs. Public Policies

Also on Thursday when Lula spoke out on social media about gasoline pricing policies through the dollar, Petrobras President Joaquim Silva e Luna – who was participating in a virtual event of Credit Suisse – stated that the company has been trying to make it clear that it cannot hold fuel prices.

“(Petrobras) operates within the legality, and has to practice market prices,” declared Joaquim Silva e Luna. According to the state president, the company must follow the law of state-owned companies, of anonymous societies, and also its statute.

The efforts and attempts to clarify the National Congress and society in general have been significant. All to say that it is not possible to freeze fuel prices.

“We know how damaging it is to try to hold prices artificially. First, we will lose many investments, making imports difficult,” declared the Petrobras president.

Silva e Luna stated that the company has social responsibility, but added that “it cannot create public policies.” According to the president, Petrobras’ contribution is to deliver financial results to its shareholders, the largest of which is the Union, and also to collect taxes for the public coffers.