Oil price in Brazil

Oil price in Brazil

This week’s news reports on a “novelty” in the area of petroleum derivatives.

Official oil prices are below international parity and have been now for quite some time.

And so what?

As Brazil is not self-sufficient in oil, it needs to import. And of course, paying international market prices.

But selling for less than you pay is not something the private sector does.

Result: according to the news there is already a list of places in the country with shortages.

Is this our “intelligence”?

The official exit is well known. Making Petrobras (the state run oil giant company) assume the damage of this “policy”.

About a decade ago, the same thing happened, with widely known and horrific results.

We are an underdeveloped country because we do not learn from our mistakes.