PT Management Changes Temer Policy That Puts Petrobras Back On Track; read review

Played at the center of the frauds investigated in Lava Jato, the state-owned company has accumulated damages of R$ 56.4 billion at the end of the Dilma government

When the former president Michael Temer took over the government, with the impeachment of Dilma Rousseff, to fix the Petrobras was one of the main challenges. Played at the center of the fraud investigated in Operation Lava Jatothe company recorded two gigantic losses: BRL 21.6 billion in 2014 and BRL 34.8 billion in 2015.

In the Temer government, the presidency of the company was transferred to Pedro Parente, with extensive experience both in public power (he was Minister of Planning, Chief of Staff and of Mines and Energy in the government of Fernando Henrique Cardoso) and in the private sector (he was president of Bunge Brasil). During the Parente management, the state-owned company’s fuel price adjustment policy was conceived, called Import Parity Price (PPI).

In essence, this policy, implemented in July 2017, provided for the determination of prices on the basis of the international market – including, in addition to the price of the oil itself, costs such as freight, inland transportation costs and port dues – as well as a margin to cover operational risks, including exchange rate volatility and profit margin. The price changes could therefore also be daily.

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Petrobras’ policy had already been questioned by former president Jair Bolsonaro, when high fuel prices, mainly due to the increase in oil prices with the war in Ukraine, began to cost him popularity. No wonder, Bolsonaro has changed the direction of the state-owned company several times.

In the new Lula administration, changing this policy has become a matter of honor. The president has been speaking for some time of “Brazilianizing” prices, that is, linked not only to international quotations, but also to internal factors.

TO disclosure of the new pricing policy, made this morning of Tuesday 16, through a material fact sent to the Securities and Exchange Commission (CVM), it is not clear how it will work. But there is always the fear that PT’s management will once again take into account political and ideological issues when setting prices and that the company will once again experience the turmoil that led to the gigantic losses of the Lava Jato era .

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.