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Aviation kerosene price increases by 18.6%
BR Aviation
Image: BR Aviation
Rafael Ramos
4/5/2022
The price of fuel is one of the biggest expenses for airlines and was expected to rise another 17%. However, the price was readjusted by 18.6% for distributors. The increase is a direct consequence of the fluctuation in the price of a barrel of oil caused by the war between Russia and Ukraine.
The price of fuel represents about 40% of the costs of airlines, and can even exceed and reach 50%. Before the increases, this amount used to be between 27% and 30% of the cost of companies.
The president of Abear (Brazilian Association of Airlines), Eduardo Sanovicz, shows concern, since the high price of fuel can compromise the resumption of aviation. “We remain firm in the sector, facing the Brazil cost on a daily basis”.
Also according to Sanovicz, the scenario for the next 120 days is uncertain. Higher fuel prices were responsible for the increases we saw in airfares.
The average price of a liter of fuel went from R$3.96 on March 23 to R$4.69 on April 1. This amount does not take into account fuel taxes or the margin charged during distribution.
Brazil is the only country in the world that has a regional QAV tax, the ICMS. In addition, foreign companies that supply in Brazil do not need to pay ICMS, reaching the point where international trips are cheaper than domestic ones, considering similar distances.
The average price of a liter of fuel increased by 91.9% in 2021, compared to 2020. The period between January 1 and March 1 has already accumulated a rise of around 38%.
Ken Yam/Unsplah
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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