Change of president at Petrobras “generates a situation of uncertainty”, says former director of the ANP

On Monday (23), the government announced a new change in the presidency of Petrobras. The name indicated to assume the position is Caio Mário Paes de Andrade. He replaces José Mauro Ferreira Coelho, appointed on 6 April.

David Zylbersztajn, former director general of the National Petroleum Agency (ANP), in an interview with CNN stated that the change of president at Petrobras “generates a situation of uncertainty”, since this is the first time in the company’s history that a c-level position exchange in just 40 days.

For the entry of a new president and change of the board, there is the entire convening process that can be around 100 days, in addition to the period necessary to make some changes. “[Dessa forma]what they call a longer term will be a frozen price”, says Zylbersztajn.

The uncertainty for Zylbersztajn is that the price freeze could cause a risk of shortages at stations and lack of fuel for mechanization and transport of the crop.

If there is an increase in the price of a barrel of oil or a lag in the price charged nationally in relation to the international value, importers will not buy the commodity from abroad, believes the former director general of the ANP. And about 15% to 20% of national demand needs to be imported. “So it can occur in a fuel shortage.”

harvest

The crop in the Midwest is highly consuming of diesel, as all transportation is done by trucks, and the region does not have a refinery nearby. About 1,000 trucks circulate on the roads every day.

Thus, Zylbersztajn says that the risk of shortage of raw material can happen if there is a lag in prices and, consequently, lack of fuel.

“It is a matter of having a loss of GDP (Gross Domestic Product) and a maladjustment in the Brazilian economy”, declares the specialist.

Future

He explains that if there is an appreciation of the dollar against the real or an increase in the price of a barrel of oil, the bill to be paid in the post-election period will be very “salty” for Brazilians. “[Porém]in some way, [o congelamento] is what the government wants until the election”.

“In other words, anyway, it’s a bad situation because you don’t follow the market rule and create natural tensions”, says the former director general of the National Petroleum Agency.

“I don’t expect good mornings for the company”, he concludes.