Petrobras (PETR3;PETR4) announced this Friday (17) that it will apply readjustments to its fuel sales prices for distributors, after almost 100 days of freezing prices for gasoline at refineries and almost 40 days for diesel. The increases are valid from this Saturday (18).
In the case of gasoline, the adjustment was 5.18%, while for diesel it reached 14.26%. The state-owned company maintained the prices of LPG (cooking gas). In a note, Petrobras reiterated its commitment to the practice of competitive prices and in balance with the market.
He also highlighted that he has avoided the immediate transfer to domestic prices of the volatility of international oil prices and the exchange rate.
At the close, the oil company’s shares collapsed: ON shares fell 7.25%, quoted at R$ 29.93; and the PNs fell 6.09%, to R$ 27.31.
Even with the readjustment, the company’s shares suffer a perfect storm, following the Ibovespa’s losses, of minus 2.91%, which adjusted to the devaluation of the ADRs of the day before, when the B3 was closed, amidst the scenario of high prices. fees.
In addition, analysts point out that today’s readjustment does not fully compensate for the gap between prices practiced abroad and in the national territory, and may trigger threats of intervention in the company and the creation of a Parliamentary Commission of Inquiry (CPI) to investigate the Council. of Administration of the state oil company.
The president of the Chamber, Arthur Lira (PP-AL), raised even more the tone of the criticism of the company, threatening to raise the taxation on the company’s profit.
Furthermore, oil prices on the international market retreated, with the Brent barrel, a reference for Petrobras, falling 5.28%, to US$ 113.48.
The authorization for the readjustment was approved yesterday by the oil company’s Board of Directors.
Petrobras readjusts diesel and gasoline
With the readjustments announced today, after 99 days, the average selling price of gasoline from Petrobras to distributors will rise from R$3.86 to R$4.06 per liter. The last adjustment took place on March 11.
“Considering the mandatory blend of 73% gasoline A and 27% anhydrous ethanol for the composition of gasoline sold at gas stations, Petrobras’ share of consumer price will rise from R$2.81, on average, to R$2, 96 for every liter sold at the pump. A variation of R$ 0.15 per liter”, said the oil company, in a statement.
For diesel, after 39 days, Petrobras’ average sales price to distributors will rise from R$4.91 to R$5.61 per liter. The last adjustment took place on 05/10.
The impact of the adjustment in the price of diesel is more relevant. Petrobras’ share of the consumer price will rise from R$4.42, on average, to R$5.05 for each liter sold at the pump, resulting in a variation of R$0.63 per liter.
Data from the Brazilian Association of Importers and Fuels (Abicom) showed that there is an average lag of -21% for diesel oil and -13% for gasoline, in this Friday’s report, which did not include today’s announcement by Petrobras.
Also in the statement, Petrobras reinforces that the state-owned company’s sales prices to distributors, using market prices as a reference, are only a portion of the prices that reach the final consumer.
“To set the pump price, portions of the mandatory blend of anhydrous ethanol and biodiesel to gasoline A and diesel A produced in refineries, distribution and resale costs and margins, and federal and state taxes are also added. In the case of diesel, taxation is currently limited to ICMS, a state tax, since federal taxes PIS/Pasep and Cofins had their rates zeroed from 03/11 to 12/31/2022,” said the oil company. .
On the verge of rising fuel prices, President Jair Bolsonaro (PL-RJ) said on social media earlier today that the measure could “plunge Brazil into chaos”. The President also recalled the impact of the truck drivers strike in 2018 and the consequences for the economy and the population of the readjustments.
– Petrobras could plunge Brazil into chaos. Its president, directors and advisers are well aware of what happened with the truckers’ strike in 2018, and the disastrous consequences for Brazil’s economy and the lives of our people.
— Jair M. Bolsonaro (@jairbolsonaro) June 17, 2022
After confirming the adjustment, Bolsonaro classified, in an interview with Meio Dia RN, the new adjustment as a “betrayal”, adding that he discusses with Lira the creation of a CPI.
“I just talked to Arthur Lira, our idea is to propose a CPI to investigate the president of Petrobras, its directors and board”, he said. “We want to know if there is something wrong with their conduct,” he added.
Also after the announcement, the president of the Chamber reacted on Twitter, saying that the president of Petrobras has to resign “immediately”.
“Not because of my personal will, but because it does not represent the majority shareholder of the company – Brazil – and, worse, it systematically works against the Brazilian people in the worst crisis in the country.”
He only represents himself and what he does will leave a legacy of destruction for the company, the country and the people. Get out!!! Because its management is an act of corporate terrorism.
— Arthur Lira (@ArthurLira_) June 17, 2022
In an interview with GloboNewsLira stated that he will meet the college of leaders to discuss Petrobras’ pricing policy and try to turn the state’s profit to the population.
According to him, there is “every possibility” of an eventual taxation of Petrobras’ profits, noting that a similar measure is about to be implemented in the US.
Lira added that the new high is retaliation by Petrobras’ president Mauro Coelho for his dismissal. Coelho was fired last month and will be replaced by Caio Mario Paes de Andrade, nominated for the post.
“He (Coelho) could have already given up his position. He is postponing his departure as a way of maybe massacring, by his dismissal,” Lira said.
The president of the Chamber also stated that he will meet the college of leaders to discuss Petrobras’ pricing policy and try to turn the state’s profit to the population.
In analysis, Credit Suisse said the announcement is positive for the company, but cautioned that “it could increase political pressure”. “The increase reduces the import parity discount, which is now -10% for diesel (R$0.60/litre) and -14% for gasoline (-R$0.60/litre).
Morgan Stanley estimates that after the increases, gasoline will still enjoy a “significant discount” of 18% against the international parity (versus 23% currently), while being able to close “primarily the current gap for diesel”, of approximately 17%. % to 5% discount.
“From a fundamentals point of view, today’s rise (in prices) was a positive move, as the company continues to invest in efforts to keep up with benchmarks international. However, the magnitude of the gasoline price readjustment could have been much greater, in our view,” he added.
Analysts pointed out that the readjustment could increase the noise level around the fuel debate in Brazil, which has been central to the pre-election campaign of all candidates.
“Our concern is that the government may intensify its attempts to intervene in company policy to show the population its commitment to fighting inflation before the elections,” he wrote.
lack of sensitivity
Consultant Adriano Pires, who was appointed this year to the position of CEO of the oil company, said that Petrobras did the right thing from a technical point of view, “but the company lacks sensitivity from a political and social point of view because of of the moment the world is going through”.
“Any private and mixed-capital company knows that it doesn’t have to take its management by fire. You have to be politically sensitive, why not increase later or increase less? Petrobras lacks this sensitivity…”, said Pires, citing the “mega effort” and the “fight” with governors to reduce ICMS.
“Here comes Petrobras with a pen and it spoils the party!?”, he said, adding that the government should also have taken previous actions to avoid impacts for consumers.
(With Reuters and Estadão Content)
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