Petrobras, the state-controlled oil company in Brazil, has declared a 9.4% hike in the average selling price of aviation kerosene (QAV) to distributors, effective from this Sunday, the 1st of the month. This decision comes in light of recent increases in global oil prices, presumably driven by geopolitical tensions, particularly between the United States and Iran, which have raised concerns about supply disruptions. The new price indicates an increase of R$ 0.31 per liter compared to the previous month.

Throughout January, the Brent crude oil prices, a key international benchmark, have increased by over US$ 10 per barrel. On Friday, the Brent price marked a rise of 2.45%, reaching US$ 72.48 per barrel. Such fluctuations in oil prices have a direct impact on fuel costs, prompting Petrobras to adjust its QAV prices at the beginning of each month as stipulated in their contracts. This price adjustment reflects the larger dynamics of the global oil market and its influence on domestic aviation costs in Brazil.

The aviation sector in Brazil is likely to feel the ripple effects of this increase, not just in operational costs but potentially in ticket prices in the future as airlines adjust their budgets in response to higher fuel prices. This situation highlights the interconnected nature of global markets and the ramifications for local industries dependent on international oil pricing.