Petrobras CEO Luna officially out after fuel price hike angered Bolsonaro (NYSE: PBR)

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Petrobras (NYSE: PBR) CEO Joaquim Silva e Luna has been officially removed by Brazil’s government, confirming an earlier report from a local media source.

Luna’s name was not included in a list of government appointed board members that was released late Monday, in effect ousting him from Petrobras since the company’s bylaws state that the CEO must be a board member.

The Mines and Energy Ministry proposed economist Adriano Pires, director of the Brazilian Infrastructure Center, as the company’s new CEO, and Rodolfo Landim, president of the former BR Distribuidora, as the new Chairman.

The appointments must be ratified by the Petrobras board at an April 13 meeting.

The incoming CEO is not likely to enjoy Luna’s level of autonomy, Pacifico Gestao de Recursos portfolio manager Leonardo Rufino told Bloomberg, adding the news “is not a complete surprise, but … clearly negative.”

Luna, who held the leadership role for only about a year, had angered Brazil President Jair Bolsonaro when he announced price increases for both diesel and gasoline on March 10.

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