Lula Government: Alexandre Silveira, new Minister of Mines and Energy, reaffirms the management's commitment to expanding fuel refining capacity in Brazil

Petrobras' fuel refining projects were suffering strong divestments in recent years. The new Minister of Mines and Energy in the Lula Government, Alexandre Silveira, reaffirmed the commitment to the Brazilian people in expanding the capacity of national refineries.

During the inauguration ceremony of the Lula Government, held last Monday (02/01), 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 the refining capacity in Brazil, as a way of circumventing recent divestment projects. For this, partnerships with Petrobras in the search for lower prices and expansion of refineries will be essential in the future, according to him.

Expansion of refining capacity with the participation of Petrobras will be the focus of the Ministry of Mines and Energy during the Lula administration 

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

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

Brazil's energy policy, which was moving toward privatizations and the sale of national assets, will once again turn to the Brazilian people, with reductions in fuel prices in the coming months.

For this, the expansion of fuel refining capacity will be paramount, since only then will there be a drop in the amounts charged.

Unlike the Bolsonaro Government, which believed that the privatization of Petrobras and its assets was the best path to follow in the segment, the Lula Government will value state projects above all else.

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

“It is urgent to enlarge and expand our refineries, taking them to the regions of the country and modernizing the plants. At this point, Petrobras, as a state vector of sectoral development and the largest refiner in the country, will naturally have to expand, leading the process and inducing the adhesion of new agents”, said the new Minister of Mines and Energy.

Alexandre Silveira highlighted the refining deficit in Brazil and stated that he intends to change the country's dependence on fuel exports

Even though it is one of the largest producers of oil and derivatives in the world, Brazil still relies heavily on imported fuels, due to the low refining capacity of these products.

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

The new portfolio leader also defended that it is necessary to implement a market design that promotes competition, but that preserves the consumer from the volatility of fuel prices.

This is because, for him, it is difficult to explain to the population that Brazil is one of the biggest players in the oil and natural gas sector, but that it cannot sustain a fuel price base that is favorable to the consumer.

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

Finally, Silveira also said that he will work for the dissemination and good use of natural gas, aiming to further increase the use of this product in the Brazilian economy.