Petrobras policies from the perspective of state- owned enterprises’ regulation

Abstract

This paper examines the role of Petrobras in Brazilian economic development by focusing on its historically strategic function. The discussion is grounded in a systematization of debates surrounding economic regulation theory, highli- ghting the contrast between the “positive” or Anglo-Saxon approach and the “regulationist” or French school of thought. By exploring regulatory alternati- ves, the paper aims to demonstrate that the state can intervene through state- -owned enterprises without undermining competitive market dynamics. The paper argues that, despite Brazil’s sufficient domestic production of oil and its derivatives, the country was significantly affected by the international price parity policy implemented from 2016 to 2023. This policy effectively dollari- zed fuel prices, aligning them with international market rates, exchange rate fluctuations, and import costs. Such a pricing strategy primarily served private interests — namely shareholders and fuel importers — at the expense of the public interest and the assurance of a stable national fuel supply. Petrobras, in this context, stands as a central case illustrating the urgent need to reassess the regulatory framework governing state-owned enterprises.