(Bloomberg) – Petroleo Brasileiro SA investors will elect a new board of directors Thursday as the state-controlled oil giant faces mounting pressure to contain surging prices from the Iran war.

The Brazilian government, which holds a 37% stake in the company, has nominated eight people for the 11-seat board. Yet two leading shareholder advisory firms are recommending a slate of opposition candidates who, if elected, may act as a check on the influence of Brazil President Luiz Inacio Lula da Silva’s administration.

The vote comes at a crucial moment for both Petrobras and Lula. The company is under increasing pressure from investors to raise fuel prices as the war has sent crude surging more than 30%. But for the president, higher gasoline prices would create a political liability as he faces reelection later this year.

“Petrobras has kept gasoline prices unchanged to avoid passing volatility on to consumers,” said Bloomberg Intelligence analyst Vladimir do Nascimento Pinto. “That will have to change once prices stabilize at a higher level.”

The board will also need to grapple with a renewed effort to become self-sufficient in refining, a segment that is less profitable than exploration and production, he said.

Minority holders have put forward eight candidates for as many as five slots on the board. Five of them will compete for two seats that are reserved for minority shareholders, including Francisco Petros and Jeronimo Antunes who are seeking reelection.

The other three candidates will battle with government nominees for eight slots. Billionaire banker Jose Joao Abdalla, one of Petrobras’s biggest shareholders, is part of the current board and is trying reelection, while former board members Marcelo Gasparino and Mauro Rodrigues da Cunha are seeking a comeback.

The government controls Petrobras through a majority of the 11-member board and has nominated eight candidates for an election on Thursday, including Planning Ministry Executive Secretary Guilherme Mello as chairman. It also seeks to reappoint Chief Executive Officer Magda Chambriard to the board. One seat is reserved for an employee representative. During the most recent annual meeting the government secured a total of six seats.