Petrobras profit could be used against rising fuel price: Bolsonaro

Brazilian President Jair Bolsonaro stated on Thursday that the profits from state-run oil firm Petrobras could be used to soothe the country’s rising fuel prices, among other options for confronting higher prices.

Fuel prices have become a heated issue in Brazil as the country’s inflation grew, with Petrobras’ recent CEOs being forced out over the price increase. The oil firm’s shareholders remain wary of price controls, prompting the Brazilian government to find other ways of curbing the cost to consumers.

Bolsonaro remarked that a fund could be made using government proceeds from Petroleo Brasileiro S.A., Petrobras’ formal company name. The money could potentially be used to prevent the cost of increasing fuel prices from being passed on to consumers.

Arthur Lira, Brazil’s lower house speaker, confirmed on Wednesday that Congress was considering such a “stabilization fund”. Lira further added that the fund could soften fuel price fluctuations while allowing Petrobras to maintain its market-based pricing policy.