Airfare price reduction is discussed in the government – 02/13/2023 – Market

The Minister of Mines and Energy, Alexandre Silveira, met this Monday (13) with the president of Petrobras, Jean Paul Prates, and the Minister of Tourism, Daniela Carneiro, to discuss measures that seek to reduce ticket prices airlines in Brazil.

Without giving details, the folder informed in a press release that the debate will be expanded with other federal government bodies, such as the Ministry of Economy, sector entities and aviation.

“We need to join forces so that we can, within the rules of governance, make Brazil return to the heyday of the Lula government, where the Brazilian people frequented airports and travel much more easily”, said Silveira in the note.

On the Petrobras side, aviation kerosene (QAV) price adjustments are monthly and defined through contractual formulas negotiated with distributors, as explained by the oil company at the beginning of the month, when carrying out the February readjustment, which raised the price of the product by 17%.

The state-owned oil company’s pricing policy has drawn criticism from the Abear airline association, which argues that the product follows parameters related to import parity, when more than 90% of it is produced in the country.

In previous speeches, Prates defended that he would change Petrobras’ fuel price policy as a whole, which would no longer be based on import parity, while still following international indicators. But he has not yet detailed how this will be done.

The executive, who took office in January, still works with the board of the previous management. Prates indicated five names for the company’s board, which are in the process of internal checks, and may still appoint new executives.

Petrobras’ board of directors follows with names appointed by the government of former President Jair Bolsonaro.

The QAV sales prices practiced by Petrobras, as the company previously explained, seek balance with the market and follow changes in the value of the product and the exchange rate, up and down, with readjustments applied on a monthly basis, mitigating the daily volatility of international quotations and the exchange rate.

Petrobras markets the QAV produced in its refineries or imported only to distributors, which, in turn, transport and sell the products to air transport companies and other final consumers at airports, or to resellers.

Distributors and resellers are responsible for installations at airports and supply services.