Brazilian President Jair Bolsonaro is prepared to privatize Petrobras, an oil company, after being blamed for gasoline price hikes, and would be consulting the initiative with his economic aides.
The issue centered on Petrobras has been politicized as energy prices have increased to the double digits which could potentially compromise Bolsonaro’s bid on the upcoming presidential elections next year.
Bolsonaro said that the move to privatize the company would be consulted with advisors, as he cannot control the fuel costs, but once the prices surge he would be to blame.
Ativa Investimentos analyst Ilan Arbetman said that privatization needs to be handled carefully as it is a matter that would involve a lot of input from stakeholders.
Meanwhile, Economy Minister Paulo Guedes said that the privatization could take a decade and suggested that the company could sell its shares to support welfare programs.
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