Lula Proposes Direct Fuel Sales by Petrobras to Cut Costs

Lula Proposes Direct Fuel Sales by Petrobras to Cut Costs

President Criticizes High Prices and Privatization

Brazilian President Luiz Inacio Lula da Silva suggested that Petrobras should consider selling fuel directly to large consumers to reduce costs. He argued that intermediaries are inflating prices and negatively impacting consumers.

Call for Direct Sales to Lower Prices

Lula believes cutting out middlemen would help lower fuel prices at the pump. However, he did not provide specific details on how Petrobras would implement such a strategy.

Privatization of BR Distribuidora Under Scrutiny

The president criticized the 2019 privatization of BR Distribuidora, now known as Vibra, which is Brazil’s largest fuel distributor. He suggested that privatization has led to higher prices for consumers.

Potential Market Impact

If Petrobras moves forward with direct sales, it could disrupt the fuel distribution market. While this could lower prices, it may also raise regulatory and competition concerns. The feasibility of such a shift remains uncertain due to logistical and contractual challenges.