By Lise Alves, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – Trying to ease uncertainty after the resignation of Petrobras president Pedro Parente on Friday morning, Brazilian President, Michel Temer, announced Parente’s successor and stated that the government will not interfere in fuel price policies.

Petrobras CEO Pedro Parente resigned Friday after criticism over fuel price policies, Brazil, Rio de Janeiro.
Petrobras CEO Pedro Parente resigned Friday after criticism over fuel price policies, photo by Andre Ribeiro/Agencia Petrobras.

Parente’s decision to leave the command of one of Brazil’s largest state-owned company led to severe volatility in Brazil’s Stock Market (BOVESPA), which fell by more than 1.6 percent before closing up by 0.63 percent. Petrobras shares, however, registered a loss of 14.9 percent on Friday due to Parente’s resignation.

“I reaffirm that my government remains committed to the recovery and financial health of the company,” President Temer told journalists on Friday night after announcing that Ivan Monteiro would be taking over as Petrobras’ CEO.

“We will continue with the economic policy that in those two years took the company from the loss and brought it to the list of the most respected in Brazil and abroad.”

Temer concluded, “I also declare that there will be no interference in the pricing policy in the company.”

Monteiro was the executive director of Petrobras’ Financial and Investor Relations Department, until Friday when he was tapped for the CEO role.

Parente resignation was celebrated by two of the country’s largest trade union federations, which had demanded his ousting during the recent nine-day truck drivers’ strike.

“The departure of the president of Petrobras, Pedro Parente, will only bring benefits to the Brazilian society,” said the statement issued by Força Sindical, adding that the former CEO’s fuel price policies only harmed the working class.

Pedro Parente headed of Petrobras for the past two years, pulling the weakened company out of the red, restructuring the oil giant and selling off smaller subsidiaries which were not part of its ‘core business’.

Under his command, Petrobras’ fuel price policy of readjusting the price of fuel at refineries on a daily basis led to stiff criticism not only from opponents but also from government allies.

According to local source, Parente told President Temer that as a CEO he had ‘stopped being positive’ for the country and that the government needed to consider ‘alternative’ pricing policies.

1 COMMENT

  1. Parente was unable to execute in the pre-sal. His auction was a bust.

    Look, I don’t want to break any laws, but there’s “stupid” and then there’s “Brazil Stupid’.

    Brazilians need to cut out the widespread racism, cut out the prevalent class elitism, cut out the rampant discrimination against women, cut out the endless, pervasive, corruption, cut out that anti-religious shaming.

    Brazilians have to permit capitalism or they will die. My prediction is they are so ill-educated, ignorant and reflexively racist, that the latter would be preferable, I should think. Personally, I will boycott Brazil for the rest of my life, however long that should be.

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