Petrobras Bondholders Wary as Fuel Price Hike Sparks Backlash
- CEO, under pressure from Bolsonaro to leave, vows to stay
- Petrobras lifted gasoline, diesel prices by as much as 25%
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Petroleo Brasileiro SA’s decision to raise fuel prices against the Brazilian government’s will is providing little relief to its battered bonds as investors remain concerned about political interference in the firm.
The state-controlled oil producer’s dollar bonds have underperformed stocks since the company announced a massive increase in diesel and gasoline prices for distributors last week. It’s a repeat of the pattern seen for the year: While preferred shares are up 13%, the firm’s century bonds are down about 10%, hovering around 89 cents on the dollar, the lowest level since May 2020.