Angry at rising fuel prices, Jair Bolsonaro replaced his Energy Minister

Brazilian President Jair Bolsonaro replaced his Minister of Mines and Energy, Bento Albuquerque, just days after he was publicly criticized for allowing state oil company Petrobras to announce a new increase in oil prices. diesel.

According to an order published this Wednesday in the Official Gazette and that had not been announced before, the right -wing commander replaced Albuquerque, a Navy admiral and who. He was one of his most trusted peopleof the economist Adolfo Sachsida.

Despite the fact that the order confirms that the change was made at the request of the outgoing minister, the surprising change in the cabinet took place just six days after the launch of the head of state. cruel and public criticism his minister and the president of Petrobras, José Mauro Coelho, for continued adjustments in fuel prices.

intensifying inflation

Petrobras, which has a price parity policy where it evaluates the international price of crude oil in the Brazilian market, announced this week a new increase in diesel, the main fuel used by trucks in Brazil, in a adjustments that could still put pressure on along with growing inflation, which reached 12.13% in 12 months, the largest since 2003according to data released Wednesday.

Brazil’s inflation was at 1.06% in April, the highest rate for that month since 1996, the statistical institute IBGE reported on Wednesday.

Foods and beverages were the category with the largest weight on the indicator last month, with an advance of 2.06%, IBGE detailed in a statement. In particular, household consumption products, such as lifetime milk, increased (10.31%).

This was followed by transportation, with an increase of 1.91%, certainly influenced by fuel increases (3.20%).

Retail price data for April is far from the 0.31% registered in the same month of 2021.

Bolsonaro was furious

“You, Minister Bento Albuquerque and Mr. José Coelho, from Petrobras, cannot raise the price of diesel. I am not begging. I am sending a statement taking into account the abusive income you have earned,” Bolsonaro said in a live broadcast on when referring to the net income record announced the same day by the state oil company.

“You can’t bankrupt Brazil. Now this is a request: Petrobras didn’t bankrupt Brazil. Don’t raise the price of fuels. I can’t interfere (with the company), but you have big profits and you have Petrobras’ social role. defined in the Constitution, “the president added.

Bolsonaro, who seeks re -election next October but appears in second place in polls far from the favorite, is former President Luiz Inácio Lula da Silva, who strongly called Petrobras ’revenue a“ violation ”that only benefits those investors. foreigner.

Despite being state -controlled, Petrobras has shares traded on the São Paulo, New York and Madrid stock exchanges, and rules that prevent direct state intervention.

record income

The oil company announced last week that in the first quarter it had acquired a benefit of 44,561 million reais (about 8,912.2 million dollars)3,718% higher than in the first three months of 2021 and the highest value for the period in its history.

Five days later, the state -owned company announced an 8.87% increase in diesel, which, according to economists, will have a strong impact on inflation in Brazil in the coming months.

Sachsida, now the new head of Mines and Energy, is an advisor and trusted person to Economy Minister Paulo Guedes.

“I thank the president for his confidence, Minister Guedes for his support, and Minister Bento for his work for the country. With so much work and dedication, I hope to cope with this challenge, which is my biggest professional challenge. “With God’s grace we are going to help Brazil,” he said in a message posted on Twitter.

Sachsida is a doctor of Economics and a lawyer and has published technical articles on economic, financial and financial policy. He is a professor at various universities, including the Catholic University of Brasilia, where he is director of the Master’s in Economics. He also became a professor at the University of Texas (USA).

Despite Bolsonaro’s criticism, the new minister made statements where defends Petrobras ’price parity policy.

“If I announce measures that give rise to fears about fiscal consolidation, the country’s risk will rise, real depreciates and fuels will rise. It starts with a proposal to reduce the price of fuels, but it’s wrong. It will have the opposite result, “he claimed.

Prior to replacing Albuquerque, which has been in the Cabinet since Bolsonaro took office in January 2019, the president had already pushed for two changes to Petrobras ’presidency, also due to his dissatisfaction with the continuing rise in fuel prices.

The change in Mines and Energy came just a month and a half after the head of state replaced nine ministers who had to leave because they had aspirations in the presidential, legislative and regional elections in October.

The changes took place in the Ministries of Agriculture; Infrastructure; Worked; Tourism; Citizenship; Women, Family and Human Rights; Regional Development; Secretary of Government, and Science and Technology.

Source: EFE and AFP

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