Petrobras (PBR -9.3%) recorded its lowest close for four months after the cancellation of the announced increase in the price of diesel under the name of Brazil Pres. Bolsonaro called for "fair" prices for the sake of truckers who went on strike last year after a diesel price hike.
The management of PBR held a meeting with its board of directors today to explain the decision. She said the decision came from Bolsonaro, Bloomberg reported.
Investors believe this decision calls into question the confidence they had placed in Bolsonaro, which has taken the power to reconnect with Brazil's sluggish economy by improving public accounts and facilitating commercial transactions.
For his part, Roberto Campos Neto, head of Brazil's central bank, said that it was not his place to comment on the move, but that there was no risk of returning to control prices practiced under previous administrations.
ETFs: EWZ, BRZU, BRF, EWZS, BZQ, UBR, FBZ