Panel SA: Petrobras increases jet fuel by 17% and airlines complain

While the airlines are advancing in conversations with the government to defend a review of Petrobras’ pricing policy on the grounds that the cost of fuel has become the sector’s biggest concern, the state-owned company determined this Wednesday (1st) a 17% increase in price of QAV (aviation kerosene) for distributors.

The new price hike should increase tension in the sector, which says it has 40% of its costs committed to fuel.

In a note, Petrobras states that since the beginning of the year there has been an increase and a reduction, which result in an accumulated increase of 3.5% in 2023.

Abear (association of companies that brings together names like Latam, Gol and Voepass), however, speaks of an accumulated increase of 37.8% in aircraft fuel in 12 months, which directly impacts the value of tickets for the final consumer.

According to Eduardo Sanovicz, president of Abear, a recent study by the entity pointed out that, in August 2022, the difference between the price of QAV at the pump in Brazil and in the United States peaked at almost 50%.

In the first weeks of management, Abear (sector association) and airline executives met with ministers Fernando Haddad (Finance), Márcio França (Ports and Airports), Daniela Carneiro (Tourism) and the president of Embratur, Marcelo Freixo.

The objective is still to present the demand of the companies to the new president of Petrobras, Jean Paul Prates, and the minister Alexandre Silveira (Mines and Energy). Prates has already announced that he intends to review the state-owned company’s pricing policy, on the grounds that most of the fuel consumed in the country is produced in Brazilian refineries.

Joana Cunha with Paulo Ricardo Martins and Diego Felix