By Rodrigo Viga Gaier

RIO DE JANEIRO, (Reuters) – Joaquim Silva e Luna, Chief Executive Officer at Petrobras said that there is no risk that Petrobras’ state-run Brazilian oil firm would attempt to artificially regulate fuel prices despite growing outrage about inflation.

Petroleo Brasileiro (as the company is known) will be required to raise diesel and gasoline prices according to its international price-parity policy, despite opposition from the executive.

Petrobras increased diesel prices by 9% this week, marking its 85th consecutive increase.

This year has seen a rise in diesel prices at the refinery by more than half. Senator Rodrigo Pacheco, a center-right senator, called on Petrobras for a “social function,” to help limit inflation.

“There’s no chance that this will happen.” [controlling prices]Luna spoke out in a late Friday phone interview. “I consider it zero. Petrobras has strict compliance rules and is well-regulated. This is something that no board will approve.

Luna stated that Petrobras was unable to transfer oil price increases onto the consumer because of previous governments, which were led by left-wing Workers Party. This resulted in billions of dollars worth losses.

Lula claimed that Petrobras’ President Jair Bolsonaro and Bento Albuquerque, the Mines and Energy Minister and Paulo Guedes were convinced artificially controlling price would prove detrimental.

Petrobras can contribute the most by paying taxes and royalties. [creating]Luna said that jobs should be emphasized, and not social policy.

The demand in Northern Hemisphere for fuel derivatives will drive oil prices higher in the fourth quarter. Domestic price adjustments will depend heavily on the exchange rate. Oil settled at $78 per barrel on Friday. This was just short of the three-year peak reached earlier in this week. It is expected that OPEC ministers will continue to increase supply at a steady rate.

Luna declared, “We are caught in the perfect thunderstorm.” Luna said, “Everyone wants the dollar to drop but I want it more than anybody else.”

Over the last 3 months, Brazil’s real has seen a drop of nearly 6% in value against the U.S. dollars. This puts further pressure upon goods on Brazilian markets that are priced in dollars.