Petrobras Hit by Fuel Politics With Subsidies Surging All Over

Oil above $100 has governments everywhere turning to fuel subsidies, and in Brazil it has even transformed state-controlled producer Petroleo Brasileiro SA into a political punching bag ahead of October elections.

Front runner Luiz Inacio Lula da Silva, a former president, has been regularly attacking President Jair Bolsonaro over high pump prices that are angering voters. Bolsonaro has responded by disparaging the leadership at Petrobras and even suggesting Chief Executive Officer Joaquim Silva e Luna could be changed after just a year in the role. Two out of Petrobras’s past three chief executives have left amid fuel price disputes, including Luna’s predecessor, who spent just over two years in his post.