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(Bloomberg) — Petrobras is considering a return to retail fuel sales after President Luiz Inacio Lula da Silva and the state-controlled oil company’s top executive complained about high pump prices.
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Four years after exiting the business now known as Vibra Energia SA, Petrobras’ board of directors will meet this week to discuss amending the company’s strategic plan to include a presence in the retail sector, according to a person familiar with the matter who asked not to be named discussing private matters.
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It’s unclear if such a move would involve trying to fully re-nationalize Vibra or buying a stake in the convenience-store operator and distributor of cooking fuels and other petroleum products.
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The proposal to be discussed for the 2026-2030 strategic plan would position Petrobras as a diversified and integrated energy company, the person said. Vibra was privatized during the Jair Bolsonaro administration.
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Petrobras’ media-relations office declined to comment.
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Lula has complained that wholesale price cuts by Petrobras for gasoline, diesel and other products haven’t flowed through to consumers at the retail level. He has blamed both filling stations and state-level taxes for the disparities.
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“It’s not possible for Petrobras to announce such a huge discount on diesel and for this discount not to reach the consumer,” Lula said earlier this month while announcing refinery investments. “Even when Petrobras cuts back, many gas stations don’t.”
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Lula has also said privatization has created multiple layers in the distribution system that result in higher prices for consumers.
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“Petrobras currently releases a 13-kilogram gas cylinder for 37 reais and it gets at a poor person’s house for 140 reais,” Lula said at the early July event. State control of retail outlets would allow more efficient delivery of the fuel, he added.
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Petrobras Chief Executive Officer Magda Chambriard has also expressed concern that filling stations aren’t passing wholesale cost savings on to consumers.
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Brazil’s attorney general has recently requested an investigation into anti-competitive practices in fuel pricing after analyzing evidence that distributors and retailers are not passing on wholesale price reductions.
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Vibra has a marketing agreement to use the Petrobras brand through mid-2029. The oil giant notified Vibra last year that it wasn’t interested in renewing the license under the current terms.
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