Petrobras is considering re-entering the retail fuel market to address rising pump prices, a move that could reverse its earlier decision to exit the business.

The state-run oil company, which sold its stake in what is now Vibra Energia four years ago, is reviewing a proposal to update its 2026–2030 strategic plan. The change would allow Petrobras to operate directly in fuel retailing again, according to a source familiar with the internal discussions.

President Luiz Inacio Lula da Silva has repeatedly criticized the fact that recent wholesale fuel price cuts from Petrobras haven’t translated into lower costs for consumers. He blames the pricing gap on private fuel distributors, gas stations, and layers of taxation introduced during the previous administration’s privatization efforts.

Speaking at a refinery investment announcement earlier this month, Lula said Petrobras sells a 13-kilogram cooking gas cylinder for 37 reais, but by the time it reaches households, the price skyrockets to 140 reais. He believes government control at the retail level could reduce such extreme markups.

Petrobras CEO Magda Chambriard has also voiced frustration over retail fuel stations failing to pass along savings to customers. Brazil’s attorney general recently called for an investigation into possible collusion between fuel retailers and distributors that may be keeping prices artificially high.

It’s still unclear if Petrobras would attempt to fully reacquire Vibra Energia or pursue a minority stake. Vibra currently uses the Petrobras brand under a licensing deal that runs through mid-2029, though Petrobras has indicated it may not extend that agreement under current terms.

If the plan goes forward, it would represent a strategic shift aimed at giving Petrobras more control over the fuel supply chain, aligning with Lula’s broader push to reverse energy sector privatizations and bring relief to struggling consumers.