The role of the State is to protect the economy from the oil shock, says Mercadante

The president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, stated that the role of the State is to cushion the impacts of the international oil shock on the Brazilian economy. According to the executive, several countries have adopted measures to contain the rise in fuel prices.

“Who is not protecting themselves from this oil shock?” said Mercadante, in an interview with Free Channelfrom Band, when asked about measures to contain gasoline and diesel prices.

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Regarding Petrobras’ role, the executive stated that the company needs to remunerate investors and follow market rules, but it also has a relevant role given the current geopolitical scenario. “We are experiencing turbulence that the government has to mediate and protect production, employment and development. This is the role of the State and Petrobras must help”, he stated.

The executive also highlighted that Brazil has greater resilience in the face of the oil crisis because of the pre-salt, ethanol and the structure of Petrobras. “We are making money from the oil crisis,” he said.

However, Mercadante criticized the current refining model in the country. According to him, Brazil “exports crude oil to import refined oil”, which reduces the capacity to cushion external shocks in fuels.