Rio de Janeiro – Brazilian state-run oil company Petrobras said on Friday it will lower aviation kerosene prices by 10.4% to distributors, marking the second consecutive cut after a 2.6% drop seen in early August.
The state-run oil giant pointed out that aviation fuel prices are reset monthly in accordance with a contract formula agreed upon with distributors. “This practice has been adopted for approximately 20 years since the first commercial contract between Petrobras and the distributors. Petrobras’ jet fuel sale prices seek to balance them with the international market and follow the product’s value and exchange rate variations, upwards and downwards.”
Only to distributors
Petrobras sells aviation kerosene imported or produced at its refineries only to distributors. “The distributors, in turn, transport and sell the product to air transport companies and other end-consumers at airports, or to resellers. Distributors and resellers are responsible for airport facilities and refueling services,” the company noted.
“The Brazilian fuel 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 jet fuel,” Petrobras noted.
Translated by Guilherme Miranda
