Brazil Petrobras shares drop after price hike canceled

EnergyAssociated Press

Stock prices of Brazil's state oil company have dropped after its decision to reverse an announced 5.7% increase in diesel prices.

The reversal was announced Thursday night after President Jair Bolsonaro met with the head of Petrobras, Roberto Castello Branco.

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Local media reported the decision to stop the price hike raised fears among investors of government interference in Petrobras.

Friday afternoon trading in Sao Paulo saw the price of Petrobras' preferred shares dropping 7.6%, while its ordinary shares fell 7.8 percent.