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Bolsonaro suggests government proceeds from Petrobras could ease fuel prices By Reuters

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© Reuters. FILE PHOTO – The logo for Brazil’s state-run Petrobras is seen at the headquarters of Petrobras in Rio de Janeiro on October 16, 2019. REUTERS/Sergio Moraes/File Photo

(Reuters.) Brazilian President Jair Bolsonaro indicated that Petrobras’ profits can be used to help reduce fuel costs in Brazil, one of many options when confronted with rising prices.

As inflation rises, fuel prices are a major topic in Brazil. Petrobras’s most recent CEOs were forced to resign due to price increases. Petrobras shareholder remain wary over price controls. The government is looking for ways to lower the costs to consumers.

Bolsonaro stated that a fund could possibly be established using the government funds from Petroleo Brasileiro SA as it is officially known. This money could be used in order to not pass the rising cost of fuel on to consumers.

“Seeing Petrobras’ profits, the ones that go to federal government…this one-billion dollar profit – I ask, I’m confirming it, can we not convert it and put it into a regulatory account?” Bolsonaro stated this during a live online broadcast.

Arthur Lira (Brazil’s speaker in the lower house) said Wednesday that Congress is considering a “stabilization funds.” He said that the fund would cushion fluctuations in fuel prices while still allowing Petrobras’ market-based pricing policy.

Bolsonaro has repeatedly stated that Congress must approve a bill fixing ICMS fuel taxes, which currently differ between states. Another measure aiming to lower pump prices is the Bolsonaro Bill.

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