Petrobras sees measures debated by the government as wrong

Petrobras sources told the CNN view with skepticism the package of measures that the government and the National Congress are debating to try to lower the price of fuel in the country. The government is debating increasing the Social Contribution on Net Income or creating an Export Tax.

The assessment is that the proposals are totally wrong, that the oil activity is one of the most surcharged and in Brazil about 70% of the net revenue from the oil fields is already with the state.

Members of the state-owned company consider that the best way would be to subsidize specific sectors of the population that are dependent on fuel. The reading is that the way the government conducts the debate, large fleets would win, as well as financially disadvantaged classes, such as app workers. There are also criticisms about changes in the rules of the game and fears that they could alienate potential investors.

The offensive by the Planalto Palace and the mayor, Arthur Lira, in recent days was considered reductionist because of the way it was put. For senior company officials with whom the CNN talked about, Petrobras is much bigger than the debate that Brasilia tries to raise.

There are, for example, 11 platforms being built at an estimated cost of R$7 billion each, in addition to 12 new projects being incorporated. One of the main fears with yet another change is that they will be discontinued.

The expectation, however, is that by the middle of next week there will be a new president at the state-owned company: Caio Paes de Andrade, nominated by the government for the post. Until then, Fernando Borges will share the condition of interim president with the Exploration and Production board. He, like most other directors, have a mandate until March 2023. Only one has a mandate until May next year.