To Rein in Fuel Prices, Brazil Taps a Pro-Subsidy Petrobras CEO

The appointment of a new CEO to head Brazil's state-run energy firm Petrobras signals the Brazilian government will try to contain volatile fuel prices, which will decrease inflationary pressures in the near term and boost President Jair Bolsonaro's chances ahead of the October general election. On March 28, Brazil's Mines and Energy Ministry announced plans to replace current Petrobras CEO Joaquim Silva e Luna with Adriano Pires, a traditionally market-oriented energy consultant, during a shareholders meeting later this month. The removal of Silva e Luna, a former defense minister who has only held the position at Petrobras for less than a year, indicates the government is seeking to appoint a CEO that is more favorable to measures that would lower fuel prices....