Petrobras raised the price of aviation kerosene (QAV) by 7.3%, totaling an increase of 48.4% in the year. The information was released by the state-owned company this Friday (4), but the product readjustment for distributors began to take effect on November 1st.
The company highlighted that this rise in the QAV occurred after three consecutive months of an average reduction in the price of the product, which had fallen by 13.5%. QAV price adjustments are monthly and defined through contractual formulas negotiated with distributors.
“Petrobras’ QAV sales prices seek balance with the international market and follow the variations in the value of the product and the exchange rate, up and down, with adjustments applied on a monthly basis, mitigating the daily volatility of international quotations and of the exchange rate. In this way, in 2022, seven increases and four reductions were carried out, resulting in a variation of +48.4% in the year”, explained the company.
Petrobras markets the QAV produced in its refineries or imported only to distributors. The distributors transport and sell the products to air transport companies and other final consumers at airports, or to resellers.
Distributors and resellers are responsible for airport facilities and fueling services.
The Brazilian market is open to free competition, and there are no legal, regulatory or logistical restrictions for other companies to act as producers or importers of QAV.
The Brazilian Association of Airlines (Abear) released a note claiming that the increase during the year, according to its own calculations, was 58.8%. According to the entity, the QAV accounts for about 40% of the total costs of an airline.
