Fuel Price Readjustment in Brazil Opens Offensive against Petrobras

Fearing effect on election, President asks for a Congressional Parliamentary Investigation Committee for Petrobras

A day after its board rejected pressure from the government of Jair Bolsonaro (PL) to postpone the fuel readjustment, Petrobras increased gasoline by 5.2% and diesel by 14.2%.

Fearing an electoral impact on his already troubled reelection campaign in October, Bolsonaro said that the state-owned company "can plunge the country into chaos," evoking the 2018 truck drivers' strike that brought Brazil to a halt.

He accused the oil company's management of "treason" and defended a Congressional Parliamentary Investigation Committee against it. The company's pricing policy is being contested.

Petrobras had not readjusted gasoline for 99 days. Diesel prices have increased 68% this year, compared to general inflation of 4.7%.

This has also led to criticism from politicians such as Bolsonaro's main rival in the presidential race, Luiz Inácio Lula da Silva (PT).

The President of the Chamber, Arthur Lira (PP-AL), who is allied with the President's administration, said he "will go to the wall" against the measure.

The turmoil sent Petrobras shares crashing, helping the stock market fall below 100,000 points for the first time since 2020.

Translated by Kiratiana Freelon

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