By Jeffrey T. Lewis


SAO PAULO--Shares of Petroleo Brasileiro SA, or Petrobras, fell 7.7% Friday after Brazilian President Jair Bolsonaro sharply criticized the state-controlled oil company's decision to raise fuel prices.

The Rio de Janeiro-based company's preferred shares fell to 26.83 reais, the equivalent of $5.22, while Brazil's benchmark Ibovespa stocks index was down 3.7% at the same time. The shares are up 2.2% from the start of this year through Wednesday's close. Thursday was a holiday in parts of Brazil and the stock market was closed.

Petrobras said earlier Friday that it will raise the average wholesale price per liter of gasoline by 5.2% and will raise the price of diesel fuel by 14.3%.

Mr. Bolsonaro has strongly criticized price increases by the oil company repeatedly since taking office in January 2019. He has replaced Petrobras's chief executive officer multiple times since then, and concern among investors about political interference in the state-controlled company's governance is growing.

Under current regulations, the government can't force the company to change its price policy, but as controlling shareholder the government can change top management.


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


(END) Dow Jones Newswires

06-17-22 1141ET