Lula Discusses Repurchasing Refinery, Fuel Stockpiles, and Pemex

Brazilian President Luiz Inácio Lula da Silva indicated on Friday, the 20th, that Petrobras, the national oil company, might repurchase the Mataripe Refinery (formerly Landulpho Alves Refinery) in Bahia. This announcement comes as the country grapples with rising fuel prices. Speaking alongside Petrobras President Magda Chambriard at an event at Petrobras' Regap refinery in Minas Gerais, Lula stated, “We will buy back the refinery in Bahia. It may take a while, but we will.” The Mataripe refinery was sold by Petrobras to Acelen, a company owned by Abu Dhabi's Mubadala Capital, during the administration of Jair Bolsonaro. Upon Lula's return to the presidency, Petrobras had expressed interest in a potential repurchase, but no further developments had been reported. Mataripe is the second-largest refinery in Brazil by capacity. An executive from Acelen told Reuters in February that the refinery is expected to increase its diesel production from 12,400 to 13,700 cubic meters per day starting in June, signaling the private company's future expansion plans. When asked for comment on Lula's statement, Petrobras did not immediately respond, while Acelen referred inquiries to the Mubadala fund, which declined to comment. Brazil imports approximately 25% of its diesel needs. Diesel prices in the country have surged by about 20% since the onset of the conflict, largely due to the spike in oil prices.