Perspectives on Remittance Flows in 2025

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

May 26, 2023

What Will the End of Fuel Price Pegging Mean for Petrobras?

Brazilian state-owned oil company Petrobras said it would end its policy of pegging the cost of fuel to international prices. // File Photo: Agência Brasil.

Q

A

Mário Braga, senior analyst for Brazil at Control Risks: “The new pricing policy is in line with President Luiz Inácio Lula da Silva’s campaign promise to make domestic fuel prices less vulnerable to international drivers and underscores how the current administration will resort to political influence to use state-owned enterprises as policymaking tools. Ultimately, Lula’s goal is to limit inflation and boost his popularity. Since Brazil relies on roads to transport two-thirds of the goods it produces and consumes, limiting fuel costs will likely have a short-term trickle-down effect on the economy. The risks such a strategy entail revolve around its long-term sustainability and the broader impacts on Petrobras and the fuel distribution market. Price mismatches can affect diesel importers’ operations and increase the risks of…”

Top News

Ecopetrol Reaches Deal With Seven Labor Unions
Colombian state-owned oil company Ecopetrol said Monday that it reached a four-year contract with seven labor unions. The agreement includes pay increases and social investment plans.
Argentina Asks Oil Companies to Finance Imports
Argentina’s government has asked oil companies to finance their imports for 90 days because of a national shortage of foreign currency.
Britain Helping to Fund Research Project in Amazon
Britain announced that it will provide 7.3 million pounds ($9.2 million) in funding for an environmental research project in the Amazon rain forest. Foreign Secretary James Cleverly visited the project’s site, located north of the city of Manaus. // File Photo: U.K. Government.

Complete editions of the Energy Services Advisor are delivered on a biweekly basis to members of the Dialogue’s Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.

ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

Subscribers

Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
Head of ESG,
Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
Leader, Arbitration & Litigation,
Laitn America, BakerHostetler

Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
Institute of the Americas

Larry Pascal
Chairman, Americas
Practice Group,
Haynes & Boone

R. Kirk Sherr
President,
Clearview Strategy Group

Daniela Stevens
Director,
Energy Transition and Climate Program,
Inter-American Dialogue

Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
International Government
Affairs, Chevron

Subscribe To
Latin America Advisors

* indicates required field

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The Inter-American Dialogue Education Program

SUBSCRIBE TO OUR NEWSLETTER / SUSCRÍBASE A NUESTRO BOLETÍN:

* indicates required