Lula Government: Alexandre Silveira, New Minister of Mines and Energy, Reaffirms Administration’s Commitment to Expanding Refining Capacity of Fuels in Brazil

The Fuel Refining Projects of Petrobras Were Suffering Strong Disinvestments in Recent Years. The New Minister of Mines and Energy of the Lula Government, Alexandre Silveira, Reaffirmed the Commitment to the Brazilian People on the Expansion of the Capacity of National Refineries.

During the inauguration ceremony of the Lula Government, held last Monday (01/02), the new Minister of Mines and Energy, Alexandre Silveira, reaffirmed his commitment to the national fuel sector. The executive stated that he intends to resume the expansion of refining capacity in Brazil as a way to circumvent recent disinvestment projects. For this, partnerships with Petrobras in the pursuit of price reduction and refinery expansion will be essential in the future, according to him.

Refining Capacity Expansion with Petrobras Participation Will Be the Focus of the Ministry of Mines and Energy During the Lula Government’s Management

It has only been a few days since the Lula Government started in Brazil, but the ministries are already reaffirming their main commitments to the Brazilian people for the coming years.

The new Minister of Mines and Energy was one of them, highlighting during the inauguration ceremony that expanding refining capacity with Petrobras participation will be his main focus during his administration.

The energy policy of Brazil, which was moving towards privatizations and the sale of national assets, will return to focus on the Brazilian people, with reductions in fuel prices in the coming months.

For this, expanding fuel refining capacity will be essential, as only this way there will be a decrease in the prices charged.

Unlike the Bolsonaro Government, which believed that the privatization of Petrobras and its assets was the best course to follow in the sector, the Lula Government will prioritize state projects above all.

Alexandre Silveira emphasized the need for refining policies that benefit not only the entrepreneur but also the final consumer.

“It is urgent to expand and enhance our refineries, bringing them to regions of the country and modernizing the plants. In this regard, Petrobras, as a state vector for sectoral development and the largest refiner in the country, will naturally lead the expansion, guiding the process and fostering the participation of new players,” stated the new Minister of Mines and Energy.

Alexandre Silveira Highlighted Refining Deficit in Brazil and Stated That He Intends to Change the Dependency on Fuel Exports in the Country

Even being one of the largest producers of oil and its derivatives in the world, Brazil still has a strong dependency on fuel imports due to its low refining capacity for these products.

Thus, Alexandre Silveira highlighted that this is one of the main causes of the high prices currently charged for the products, stressing that the Lula Government will focus on resolving this issue.

The new leader of the ministry further argued that it is necessary to implement a market design that promotes competition while protecting consumers from the volatility of fuel prices.

This, because for him, it is complicated to explain to the population that Brazil is one of the largest players in the oil and natural gas sector but cannot sustain a base of fuel prices favorable to consumers.

“We need to exercise our creativity and think of solutions that work for investors, but especially for the Brazilian people,” he stated.

Finally, Silveira also mentioned that he will work towards the dissemination and effective use of natural gas, aiming to further increase the utilization of this product in the Brazilian economy.