Brazil oil workers begin strike in new blow to government
admin • May 31, 2018 • 2444
An oil worker points to a patch on his shirt that reads: “We are not for sale”, near the entrance to Petrobras Alberto Pasqualini Refinery, in Canoas, Brazil May 30, 2018. REUTERS/Diego Vara
Brazilian oil workers began a 72-hour strike on Wednesday (May 30) in a new blow to President Michel Temer following a nationwide trucker protest that has strangled Latin America’s largest economy for over a week.
The strike affecting several rigs, refineries, plants, and ports is the latest challenge for state-led oil firm Petroleo Brasileiro SA, whose shares have tumbled nearly 30 percent in two weeks over fears that political interference would unwind more investor-focused policies.
Late on Tuesday (May 29), Reuters reported that Temer was considering an overhaul of a market-based fuel pricing policy at Petrobras, which could provoke even more investor flight. Temer’s office said in a Wednesday morning statement that he would preserve the policy.
The oil sector strike included workers on at least 20 oil rigs in the lucrative Campos basin of 46 operated by Petrobras, as the company is known, according to FUP, Brazil’s largest oil workers union. Petrobras said any disruption would not have an immediate major impact on its production or overall operations.
Brazil produces about 2.1 million barrels of oil per day, making it Latin America’s largest crude producer.
The oil strike was declared illegal by Brazil’s top labor court on Tuesday after Petrobras argued it was about politics rather labor issues. FUP said it had not been informed of the ruling. — Reuters
Oil companies are set to implement price cuts on Tuesday (November 26) at 6:00 a.m.
Shell and Petro Gazz will implement P0.20 per liter price cut in gasoline while P0.10 per liter will be cut from diesel. Shell will also have a P0.10 per liter price rollback in kerosene.
Meanwhile, Clean Fuel already implemented their price cuts on Sunday (November 24). Diesel price went down by P0.10 per liter while gasoline price was cut by P0.10 per liter.—AAC (with reports from Grace Casin)
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