June 15, 2024

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Airlines request Brazil and Petrobras to reduce airplane fuel prices

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The IATA airline lobby has urged the Brazilian government and the state-owned oil company Petrobras to reform the pricing of aviation fuel in the country, aiming to lower costs deemed “excessively high” in Latin America’s largest economy. The International Air Transport Association (IATA) announced on Monday that local prices “do not correspond to the reality of an oil-producing country,” noting that fuel costs pose one of the primary challenges for the industry in Brazil.

Petrobras, the main oil producer in Brazil and responsible for a significant portion of the country’s refining activity, adjusts airplane fuel prices monthly based on factors such as global oil prices and exchange rates. “Petrobras’s monopoly position and additional administrative costs charged by suppliers artificially inflate airplane fuel prices,” commented Peter Cerda, IATA’s representative in the Americas. Brazil’s Ministry of Mines and Energy did not immediately issue comments on the request.

In response, Petrobras stated that it had reduced prices at its refineries by an average of 6% starting from December 1, totaling a 19.6% decrease for the year. “It is relevant to highlight that the Brazilian market is open to free competition, without legal, regulatory, or logistical restrictions for other companies to participate as producers or importers of aviation fuel,” the giant oil company noted in a statement.

Published by Iraic.Info, a news and information agency.

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