Gasoline readjustment is left out of meeting between Lula, Prates and Minister of Mines

In the midst of a crisis with the government for, among other reasons, holding back the price of gasoline, which is out of line with the international market, the president of Petrobras, Jean Paul Prates, met with president Luiz Inácio Lula da Silva (PT ) on the afternoon of this Tuesday (1st). The meeting was also attended by Minister Alexandre Silveira, of Mines and Energy, with whom the manager of the state-owned company has been facing internal quarrels.

According to the Presidency’s Communication Secretariat, the fuel readjustment was left out of the discussions, which would have focused on Petrobras’ Investment Plan and on the ministry’s actions in the New PAC, which will be launched on the 11th.

Prates says that the meeting was “auspicious and constructive” in the presentation of the plans, which reinforce the intention to drill wells for oil extraction throughout the Brazilian Equatorial Margin that runs from Amapá to Rio Grande do Norte – including the area at the mouth of the Amazon River, target of intense discussions between the state-owned company, Ibama and the ministries of Mines and Energy and the Environment.

“It dealt with the investment plans, projects and works already approved, with which the Brazilian state-owned energy company will contribute to economic stability, attracting more investments, creating jobs and combating inequalities in Brazil”, said Prates.

“The company’s investments in the new PAC, which aims at more development for the country and the generation of jobs and income”, said Silveira.

This Tuesday’s (1st) meeting took place a day after Petrobras itself informed that it does not rule out a price adjustment for gasoline and diesel at the pumps to compensate part of the gap in comparison with the international market, which already reaches 21% according to importers.

The subject is delicate for the government, since an increase in fuel prices would directly affect inflation, which is on a downward path. This serves as a reason for Lula to put pressure on the Central Bank to start reducing the basic interest rate, which is being discussed by the Monetary Policy Committee (Copom) and will be announced later this Wednesday (2nd) afternoon.

Last weekend, Prates reinforced his intention to drill a test well in the region, putting pressure on Ibama to issue the necessary licensing. Petrobras projects an investment of BRL 16 billion across the Equatorial Margin by 2027.

In addition to fuel prices and the exploration of the Equatorial Margin, Prates is also pressured by Silveira to increase natural gas production, mainly for industries.