Brazil to review Petrobras fuel price policy

Brazil’s new government will review federal oil company Petrobras' fuel import parity price policy (PPI).

"Certainly, PPI has to be seen through the eyes of the new government," energy and mines minister Alexandre Silveira told reporters, without elaborating on the details.

The PPI was adopted during the Michel Temer administration and adjusts domestic prices in line with international market prices. Before the reforms, prices were defined without clear criteria, enabling political interference in price management – sometimes to control inflation – which affected the company's cash flow.

But former president Jair Bolsonaro also tried to force price changes and criticized the PPI. In the end, his government could change fuel prices only through tax reductions rather than interference at Petrobras.

Some analysts attributed Bolsonaro’s defeat in the October election to high inflation, driven by fuel prices.