The dismissal of the president of Petrobras has been discussed by Bolsonaro since the problems with rising fuel prices

On the afternoon of Monday, March 28, the President of the Republic Jair Bolsonaro decided to dismiss Joaquim Silva e Luna, president of Petrobras. According to information from the newspaper O Globo, the reason for the decision, which has already been previously mentioned as a possibility, is the pressure that the state-owned company suffers due to increases in fuel prices.

In the past few weeks, the readjustment of fuels in refineries was responsible for the increase in gasoline prices by 18,7% and diesel prices by 24,9%. In this sense, from February 2021 to February 2022, the IPCA on fuels, that is, the main indicator of inflation in the country, jumped by 33%. Gasoline increased 32%, ethanol, 36%, and diesel 40%, corresponding to values ​​much higher than the general index, which is 10,54%.

Now, with the resignation completed and following what rumors already pointed out, the new president of Petrobras is confirmed: Adriano Pires, the current director of the Brazilian Center for Infrastructure. 

See the announcement made by CNN about the decision of Petrobras' new presidency:  

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The Ministry of Mines and Energy published a note during the night of the same day 28 to clarify that “it consolidated the list of nominees of the Controlling Shareholder to compose the Board of Directors of Petróleo Brasileiro SA – Petrobras, to take effect from the confirmation by the General Meeting Ordinary Meeting, which will take place on April 13, 2022”. In the announcement, Adriano Pires is also confirmed for the presidency

In early March, the Government appointed new members to Petrobras' Board of Directors and Supervisory Board. Among them, there is the name of Luiz Rodolfo Landim Machado, current president of Flamengo, as a candidate for the position of president of the Board of Directors. The chosen one, in fact, will be announced after the official election, which will take place on April 13 at the Ordinary General Meeting.

Since 2015, Petrobras – which scored record profits in 2021 – has a large presence of minority shareholders at the Meeting and the current board, which has 11 members, has three representatives appointed by market investors.

In addition to the engineer, the government recommended seven other people for the Board of Directors: Carlos Eduardo Brandão, Joaquim Silva e Luna, Luiz Henrique Caroli, Márcio Weber, Murilo Marroquim, Ruy Schneider and Sonia Villalobos. Of the names indicated, four already play a role in the board.

As for the Supervisory Board, the government's nominees were Agnes Maria de Aragão da Costa, Janete Duarte Mol (representative of the National Treasury) and Sergio Henrique Lopes de Sousa. For the positions of substitutes, the indication is Marisete Fátima Dadald Pereira, Otavio Ladeira de Medeiros and Alan Sampaio Santos.

Whose fault is the rise in fuel prices?

According to the EXAME/IDEIA survey, published on March 22, for 60% of Brazilians, the main factors responsible for current fuel prices are the War in Ukraine and President Bolsonaro. Only 20% of respondents believe that Petrobras is to blame for this increase

The increase in fuel prices has already affected the behavior and pockets of Brazilian consumers. Still according to the EXAME/IDEIA survey, 83% of respondents say they have reduced the use of cars or motorcycles due to the increase in gasoline, diesel and ethanol. The rise in prices is the biggest obstacle that Brazil needs to fight this year, in the opinion of 57% of those interviewed in the survey. Then comes unemployment (19%), poverty (12%), and violence (6%). Maurício Moura, founder of IDEIA, says: “Inflation is a matter of concern for Brazilians. What will dominate the debate this election year is the economy”.