Bolsonaro government will have four presidents of Petrobras in less than two years; understand the changes | Economy

Before him, the state-owned company was chaired by General Joaquim Silva e Luna (the military took office in April 2021 and remained in the post until March this year) and by economist Roberto Castello Branco (appointed to the position in January 2019 and fired in February. of 2021 by Bolsonaro). Below, understand the three exchanges and how the changes relate to the import parity price (PPI).

  • How is the state’s pricing policy? What does the law say? Understand
  • State-owned company today pays BRL 24 billion to shareholders; government receives BRL 8.8 billion

José Mauro Coelho — Photo: Reproduction

Graduated in industrial chemistry, with a master’s degree in materials engineering and a doctorate in energy planning from the Energy Planning Program (PPE) of the Federal University of Rio de Janeiro (UFRJ), the executive led the second shortest period of management at Petrobras since the end of military dictatorship.

He left his position under pressure from the government after the price readjustment of diesel and gasoline. His departure had been expected since May 23, when the Ministry of Mines and Energy stated that “several geopolitical factors known to all result in impacts not only on the price of gasoline and diesel, but on all energy components”.

Joaquim Silva e Luna inaugurated as president of Petrobras — Photo: Reproduction/YouTube/Petrobras

Military, the general took office in April 2021 and remained in the post until March this year, totaling 343 days in office. He was fired in April this year for having followed the market logic for setting fuel prices.

Even with more sporadic readjustments, the general was displeased with following the market logic for setting prices. Faced with the growing tension after the outbreak of the conflict between Russia and Ukraine, Petrobras went 57 days without readjustments while studying the escalation of commodity prices in the world. But the delay forced it to make a severe readjustment in prices, with an increase of 18.8% in the liter of gasoline and 24.9% in the liter of diesel for the refineries.

Silva e Luna was the first military man to take command of Petrobras since 1989, when Navy officer Orlando Galvão Filho left his post. The state-owned company was commanded by the military during most of the dictatorial period and was captained between 1969 and 1973 by General Ernesto Geisel, who would become president of the Republic in the following five years.

The president of Petrobras, Roberto Castello Branco, during a hearing in the Chamber commission — Photo: Will Shutter/Chamber of Deputies

An economist, the first to take charge of the state-owned company during Bolsonaro’s government, he was appointed shortly after the 2018 elections by the Minister of Economy, Paulo Guedes. He remained in office until February 2021, when he was fired by Bolsonaro, who claimed to be dissatisfied with the fuel price readjustments during the economist’s administration.

The PPI and the exchanges at Petrobras

The three former presidents of Petrobras were victimized by the progressive rise in fuel prices. A pre-candidate for reelection, Bolsonaro demanded that prices be contained. The President has already called the profit of the state-owned company “rape” and pressured the company not to readjust prices.

Petrobras, however, is subject to the criterion of international parity, a policy adopted by the government of former president Michel Temer in 2016 that makes the price of fuels vary according to the price of a barrel of oil on the international market and fluctuations in the dollar.

Still under Pedro Parente (who presided over Petrobras in the Temer government from June 2016 to June 2018), the state-owned company adopted the import parity price (PPI) to set the price of gasoline and diesel at refineries.

The PPI is driven by fluctuations in the price of a barrel of oil on the international market and by the exchange rate. The successive readjustments, despite helping the company’s cash flow, were the main reasons for the dismissals of José Mauro Coelho, Joaquim Silva e Luna and Roberto Castello Branco.

The likely replacement for José Mauro Coelho should be Caio Paes de Andrade, Secretary of Debureaucratization at the Ministry of Economy, according to Valdo Cruz’s blog (read more here). He was nominated for the position by the government a month ago, but the exchange ran into the legal procedures defined for the replacement.

Caio Paes de Andrade has a degree in social communication from Universidade Paulista, a postgraduate degree in administration and management from Harvard University and a master’s degree in business administration from Duke University, in the United States.

Caio Paes de Andrade — Photo: Publicity

This is not the first time that Caio Paes de Andrade is considered to take charge of the state-owned company. Seu was even considered for the post when General Joaquim Silva e Luna was fired. However, at the time, the then Minister of Mines and Energy Bento Albuquerque preferred the name of economist Adriano Pires on the grounds that the secretary had no experience in the area. Days later, however, Pires withdrew from assuming the presidency of the state-owned company.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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