Petrobras raised the average price of aviation kerosene, known as QAV, sold to distributors by 7.2% on Sunday, November 1. The adjustment amounts to R$0.45 per litre compared with October and takes effect immediately, after the 11.76% increase applied the previous month.
The state-owned company said the rise reflects higher international fuel prices amid escalating geopolitical tensions in the Middle East and reduced refining capacity in Russia and Ukraine due to the war between the two countries. Petrobras said its contract-based pricing formula cushions short-term market fluctuations, making domestic adjustments more moderate than those seen abroad. In international markets, prices for airlines may be revised daily.
The latest increase adds to cost pressures on airlines. Industry representatives say recent adjustments have raised fuel’s share of operating expenses from 32% to 45%. Higher QAV costs have also been passed on to passengers through airfares.
Air ticket prices rose 9.66% in October, contributing to a 0.82% increase in Brazil’s broad consumer price index, the IPCA, that month, according to the IBGE statistics agency.
Petrobras said the cumulative change in domestic QAV prices since the start of the conflict in the Middle East remains below the increase in international markets, which it says keeps Brazilian aviation fuel competitive.
Sources: Folha Mercado.