Brazilian oil and gas major Petrobras announced a 10.4-percent cut in aviation kerosene prices to be effective on September 1. Earlier this month, the company had already cut aviation fuel prices by 2.6 percent.
In a statement, Petrobras informed that the move “seeks to reach a balance with international markets.” It reinforced that its price adjustments — based on international prices and foreign exchange rates — will be monthly as a way to reduce volatility for airlines.
Since last month, Petrobras has also reduced gasoline and diesel prices at refineries, as crude prices tumble to around USD 100 a barrel. In March, they peaked at USD 140 after the Russian invasion of Ukraine.
Fuel accounts for roughly one-third of airlines’ entire operational costs, and the 64-percent rise in kerosene prices between January and June trickled down to airfares, which soared by 120 percent to a decade high.
Airplane ticket prices continue to weigh on inflation. While the country recorded its biggest monthly deflation on record in July, airfares became 8 percent more expensive that month — and over 77 percent in 12 months.
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