Brazilian state-owned oil company Petrobras announced on Monday, 1 December 2025, that it is increasing the average price of aviation kerosene (QAV) sold to fuel distributors by 3.8 %. The adjustment, equivalent to R$0.13 per litre (about US$ 0.024), takes effect immediately and will be reflected in invoices issued throughout December.
Although fuel distributors, airlines and airports are free to negotiate final prices, Petrobras’ monthly reference has a direct impact on the cost base of every carrier operating domestic or international flights in Brazil. Aviation fuel represents 25-35 % of an airline’s operating expenses; a single-digit hike can therefore translate into millions of reais in additional costs over the course of a month—especially during the Southern-Hemisphere summer peak when aircraft utilisation is high.
![Petrobras Raises Jet Fuel Prices 3.8% as of 1 December 2025]()
Executives at Brazil’s three largest carriers (LATAM Brasil, Gol and Azul) told investors earlier this year that each R$0.10 movement in QAV prices changes annual operating costs by roughly R$450-500 million for the group. With margins already pressured by the strong US dollar (currently at R$5.34) and fierce domestic fare competition, carriers are expected to pass at least part of the increase on to passengers through higher ticket prices, fuel surcharges or reduced discounting on corporate contracts.
For corporate mobility managers, the timing is awkward. December–February is traditionally the period with the greatest volume of expatriate rotations in mining, O&G and agribusiness projects, as well as the highest demand for inbound leisure traffic. Travel-management companies (TMCs) are advising multinational clients to lock in negotiated fares quickly, re-optimise routing via hubs with lower fuel levies (e.g., Panama or Bogotá) and monitor route profitability—particularly on long domestic legs such as São Paulo–Manaus or Brasília–Porto Alegre that are QAV-intensive.
In the medium term, today’s price move underscores the importance of Petrobras’ ongoing review of its fuel pricing formula, which considers Brent crude benchmarks and the BRL–USD exchange rate. The market is watching closely whether President Lula’s administration will pursue additional tax relief on QAV—something several state governments have already done by lowering ICMS sales tax to 7 %—to keep Brazil competitive as a regional aviation hub ahead of COP 30 in November 2025.
Although fuel distributors, airlines and airports are free to negotiate final prices, Petrobras’ monthly reference has a direct impact on the cost base of every carrier operating domestic or international flights in Brazil. Aviation fuel represents 25-35 % of an airline’s operating expenses; a single-digit hike can therefore translate into millions of reais in additional costs over the course of a month—especially during the Southern-Hemisphere summer peak when aircraft utilisation is high.
Executives at Brazil’s three largest carriers (LATAM Brasil, Gol and Azul) told investors earlier this year that each R$0.10 movement in QAV prices changes annual operating costs by roughly R$450-500 million for the group. With margins already pressured by the strong US dollar (currently at R$5.34) and fierce domestic fare competition, carriers are expected to pass at least part of the increase on to passengers through higher ticket prices, fuel surcharges or reduced discounting on corporate contracts.
For corporate mobility managers, the timing is awkward. December–February is traditionally the period with the greatest volume of expatriate rotations in mining, O&G and agribusiness projects, as well as the highest demand for inbound leisure traffic. Travel-management companies (TMCs) are advising multinational clients to lock in negotiated fares quickly, re-optimise routing via hubs with lower fuel levies (e.g., Panama or Bogotá) and monitor route profitability—particularly on long domestic legs such as São Paulo–Manaus or Brasília–Porto Alegre that are QAV-intensive.
In the medium term, today’s price move underscores the importance of Petrobras’ ongoing review of its fuel pricing formula, which considers Brent crude benchmarks and the BRL–USD exchange rate. The market is watching closely whether President Lula’s administration will pursue additional tax relief on QAV—something several state governments have already done by lowering ICMS sales tax to 7 %—to keep Brazil competitive as a regional aviation hub ahead of COP 30 in November 2025.
