RIO DE JANEIRO, Feb 26 (Reuters) - Brazil’s Petrobras preferred shares slid 3.5 percent on Wednesday to close at their lowest level in more than eight years as investors feared that government-imposed fuel price controls could prevent the oil company from meeting the goals it set in a 2030 strategic plan.
Shares of Petroleo Brasileiro SA, as the state-controlled company is formally known, closed at 13.68 reais, their lowest since November 2005, according to preliminary data from Brazil’s Bovespa stock exchange.
The price slide followed the announcement of Petrobras’ strategic plan through 2030, in which it scaled back investments in order to curb soaring costs and rising debt.
Petrobras’ shares have tumbled about 20 percent so far this year on fears that President Dilma Rousseff, struggling with stubborn inflation in an election year, will not allow domestic fuel prices to go up as much as needed for the company to raise enough money for its ambitious investment plan.
Reporting by Walter Brandimarte; Editing by Diane Craft