President Fernando Henrique Cardoso of Brazil has decided that the state-owned oil company Petrobas has been pampered silly and needs to be disciplined. He proposes to do so by selling it off to private investors, arguing that till now the firm's only contribution has been to augment the state's federal deficits.
The sullen Petrobas employees have retaliated by going on a strike from May 3, throwing the nation in a state of utter confusion. All but one of the 11 oil refineries came to a grinding halt, fuel stocks dwindled and kitchens were bereft of cooking gas following the strike.
But Cardoso, refusing to be bullied by the oil workers, has deployed the army to tackle the situation. Now the soldiers have taken over the refineries in the 2 industrialised states, Sao Paulo and Parana. Meanwhile the government is scrambling to cover the shortfall with imports and alternative fuels.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.