Petrobras shares drop as Brazil’s Bolsonaro slams pricing policy

The selloff came after Bolsonaro criticised the firm’s fuel policies as being only pleasing to financial markets.

Petrobras shares plunged 21 percent on Monday, wiping out 70 billion reais ($12.6bn) in market value, as Brazilian President Jair Bolsonaro again slammed the state-controlled oil company’s pricing policies after he replaced its market-friendly CEO with a retired army general. The selloff, following a series of analyst downgrades, deepened after Bolsonaro said the company’s fuel policy was only pleasing to financial markets and select groups in Brazil and should be changed as part of an effort to lower gasoline and diesel prices. Overall, the last few days have marked a dramatic about-face for Bolsonaro, a right-wing populist whose interventionist instincts until now had been largely contained by economically conservative allies.