The privatization of Petrobras means the end of hangers and political exploitation disguised as a “social function”.

Rising fuel prices are a recurring topic in conversation circles and should be gaining more and more space as the election debate rages on and the tone in campaign material on TV, radio and social media rises. Last week, the Chamber of Deputies approved a bill that would limit the ICMS tax on fuel. And this Tuesday (31), the plenary session was the scene of a violent clash between House President Arthur Lear (PP-AL) and MP Glauber Braga (PSOL-RJ).

The discussion came after Lyra defended the privatization of Petrobras, a move that Glauber and all the leftists with their yearly statism oppose. After the question of “whether Lyra had any shame”, Glauber was almost expelled from the plenum. Lyra is not just a deputy; is the President of the Chamber. And when the president says loud and clear that the privatization of Petrobras is important in the context of containing and lowering fuel prices, it shows that there is strong support for the proposal. It should now take the form of an invoice and show the flexibility that the question deserves in handling it.

With the price of gasoline approaching R$7.00, reducing the ICMS fuel burden in the states is a measure that helps but is palliative. Improving the domestic situation involves opening the market, eliminating monopoly and increasing competition.

Lula, the poll leader, says the problem stems from a lack of investment in Petrobras, a company that the PT government has squandered due to corruption and mismanagement. Coming up with this rhetoric is a return to a dark past. It makes no sense, it contradicts what experts and serious commentators say about the oil refining sector.

Petrobras is of interest to politicians who view the company as a job hanger where they can appoint directors and gain influence in contracts and drain public resources for their own benefit. The claim that the state should control assets in “strategic sectors” still seduces a significant part of politicians. This delusion must be fought.

Market liberalization in Brazil is slow. This has been happening to Petrobras’ subsidiaries and refineries in recent years and needs to be given more momentum. This would make a significant difference at a time when prices are affected by a domestic market still unbalanced due to the weight of a state-owned company and an international situation where the war in Ukraine and production chains are still recovering from the coronavirus pandemic and the clumsy and interventionist measures taken governments.

Equipped with mixed capital and controlled by the Union, Petrobras is the largest company in Brazil and one of the largest in the world in its field. Turning it over to the private sector requires a political effort that I hope Congress can make as soon as possible.

Today, Petrobras, as a public company, limits competition and competitiveness because private companies cannot withstand the gigantism of the state, which leaves the citizen hostage. The state oil company imposes high costs on the population. A more economical and efficient private structure will have a positive impact on the price. In addition, it will put an end to hanging at work and the temptation of political interference that masquerades as a “social function” of Petrobras.

Text by Douglas Sandry, Electrical Engineer and Parliamentary Counselor. Every Wednesday he participates in the “Direto de Brasília” panel.

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