MercoPress. South Atlantic News Agency

Brazil: drop in price of jet fuel announced

The new prices will be available on Petrobras' webpage Saturday

Brazil's state-run oil company Petrobras Wednesday announced a 0.84% reduction in the sales prices for distributors of jet fuel starting Saturday. It is the third consecutive drop following a 10.4% one earlier this month after August's 2.6%.

According to Petrobras, monthly adjustments to the price of aviation kerosene (QAV) are defined through a contractual formula negotiated with distributors.

“Petrobras' QAV sale prices to distributors seek a balance with the international market and follow the variations in the product's value and the exchange rate, upwards and downwards, with readjustments applied on a monthly basis, mitigating the daily volatility of the international quotations and the exchange rate,” the company said in a statement.

Petrobras markets only to distributors QAV produced at its refineries or imported. It is up to distributors to transport and market the product to airlines and other consumers at airports, or to retailers, who “are the ones responsible for the facilities at airports and for the supply services,” the statement went on.

“It is important to emphasize that 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,” Petrobras stressed.

“The new QAV prices will be available on this site as of October 1, the effective date,” it further explained on its webpage.

(Source: Agencia Brasil)