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President dismisses risk of shortages in the country

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  • President dismisses risk of shortages in the country

The president of Petrobras, General Joaquim Silva e Luna, ruled out any risk of a shortage of oil products in the country, during a hearing at the CAE (Economic Affairs Commission) of the Federal Senate. Asked about the refineries being sold, he stated that Petrobras monitors all the units that are for sale and there is no problem in production.

The state-owned company has put 8 of its 13 refineries for sale and so far has managed to sell only 3.

According to Luna, the Mataripe refinery, in Bahia, sold to investment fund Mubadala, has a utilization factor of 91%, the same average as other Petrobras refineries at the time, and not 60%, as questioned by senator Omar Aziz (PSD-AM).

The president of Petrobras said that for 30 days the company has not readjusted fuels and that he is analyzing whether a readjustment will be made downwards, but that nothing has been decided.

During the session at the CAE, senators recommended the creation of a stabilizer fund to reduce the volatility of fuel prices in the Brazilian market, suggesting the use of company dividends, while other parliamentarians defend the taxation of oil exports.

Luna, however, stated that the state-owned company is not the correct instance for this charge, as it is a public policy. “Petrobras has contributed, but it’s a matter for the Ministry of Economy and Congress, but it’s an interesting solution at a time of difficulty,” Luna said about the possible creation of the fund to stabilize prices.

The end of natural gas contracts is leading Petrobras to negotiate with distributors, informed the president of Petrobras. He ruled out any conflict in the process.

According to the general, in the last six months, natural gas rose 600% on the international market, at a time when the state-owned company is renewing contracts under the New Gas Law, approved in March this year.

Luna stated that the review of the contracts is taking place without any misunderstandings and that the Ministry of Mines and Energy is monitoring these negotiations.

“There are contracts in relation to natural gas that are being closed, but there are no disagreements. The ministry has followed this process with us to reach a solution without any conflict,” he declared when questioned by lawmakers.