By Jeffrey T. Lewis and Luciana Magalhaes

SAO PAULO--Roberto Castello Branco, the chief executive of Petroleo Brasileiro SA, said he'll leave the state-controlled oil company at the end of his term in March and that he'll work to make the transition as smooth as possible for the new head of the company.

Brazilian President Jair Bolsonaro last week named a replacement for Mr. Castello Branco after a dispute over the company's fuel pricing policy. Mr. Bolsonaro called an almost 10% increase in the price of gasoline and an almost 15% increase in the price of diesel fuel that the company announced last week excessive, and on Friday he nominated Joaquim Silva e Luna, an army general, to be the new CEO.

Mr. Castello Branco, speaking during a conference call discussing Petrobras's fourth-quarter earnings, said he has no information on the transition to a new chief executive.

The outgoing CEO strongly defended the company's fuel pricing policy, which is based on international market references including the price of imports, and said that policy will remain in place at least until the end of his term at Petrobras on March 20.

Mr. Castello Branco said there have been no demands that Petrobras directors leave as well, and that they intend to stay on, adding that he sees no reason for changes to the company's strategy, including its program of asset sales.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

02-25-21 1016ET