Petrobras chief resigns after outrage over fuel price hikes

• José Mauro Coelho had held the position since April.
• He was replaced by Caio Mário Paes de Andrade, an official from the economics ministry.
• Petrobras increased the price of gasoline and diesel by 5.2% and 14.2%, respectively.

The chief executive officer of Petrobras, the state-owned energy firm in Brazil, resigned on Monday in response to a reaction led by the country’s president after the corporation raised fuel prices again on Saturday.

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Since April, José Mauro Coelho had held the position. The government said last month that he would be replaced by Caio Mário Paes de Andrade, an official from the economics ministry, once a due diligence process was finished and he joined the board of directors of the corporation.

Coelho, however, resigned as a result of the escalating outrage over rising petrol prices. A temporary chief executive officer will retain the position until Paes de Andrade’s official appointment.

Saturday, Petrobras increased the price of gasoline and diesel by 5.2% and 14.2%, respectively, in accordance with its policy of tying prices to international values. The action was criticized by President Jair Bolsonaro, who is scrambling to curb inflation, which is harming his re-election chances this year.

Speaker of the lower house of Congress and close Bolsonaro friend Arthur Lira sought Coelho’s resignation.

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The leading hydrocarbon producer in Latin America has a policy of aligning diesel and gasoline pricing with international rates. Nonetheless, as crude oil benchmarks have risen as a result of the conflict in Ukraine, gas price increases have infuriated the people.