Petrobras (PBR -9.3%) posts its lowest close in four months after it canceled an announced diesel price increase as Brazil Pres. Bolsonaro called for “fair” prices out of concern for truckers who went on strike last year after a diesel price hike.
PBR management held a meeting with its board of directors today to explain the decision and said the decision came from Bolsonaro, Bloomberg reports.
Investors say the move calls into question the trust they had placed in Bolsonaro, who took power vowing to revive Brazil's sluggish economy by boosting public accounts and making it easier to do business.
Meanwhile, Brazil's central bank chief Roberto Campos Neto says it is not his place to comment on the move but that there is no risk of a return to price controls practiced under prior administrations.
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