LatinNews Daily - 05 January 2023

In brief: Incoming CEO of Brazil’s Petrobras reassures on fuel prices

*Senator Jean Paul Prates, whom President Luiz Inácio Lula da Silva has named as his choice to take over as the new CEO of Brazil’s state-run oil company Petrobras, has said there will be no interventions in fuel prices. Speaking to journalists Prates was cited by Reuters as saying that he does not intend to unlink Petrobras’ fuel prices from those of international markets, but “will unlink them from import parity.” He was reported as saying “today you are simulating a diesel made in Rotterdam plus freight, plus expenses and putting that price in the refineries that are producing here,” arguing this was a distortion that damages local oil producers. He went on to explain that “we will simply try to balance this. Without forcing, without imposing a tariff, with absolutely no direct intervention in the market.” Prates was also cited by Bloomberg as saying Petrobras would revise the way it calculates the need for price adjustments, but these would remain in line with global prices. Shares in Petrobras reportedly rose by as much as 1.12% following his comments. On 3 January Brazil’s energy & mines ministry formally notified Petrobras of its appointment of Prates, which officially started the leadership transition in Petrobras. Then yesterday current CEO Caio Mário Paes de Andrade formally resigned to take a job with São Paulo state’s new government. Prates’ appointment awaits approval by the firm’s board of directors with Petrobras’s chief production development office João Henrique Rittershaussen named as interim CEO in the meantime.

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