Petrobras increased the average price of jet fuel sold to distributors by 3.8%, raising the price by 0.13 real (about US$0.0243) per liter. The adjustment takes effect on December 1, 2025.
The move follows a series of adjustments earlier in the year. Petrobras raised jet‑fuel prices by 7% in January, 2.9% in July, 4.7% in August, 1.4% in November, and had reduced the price by 0.13 real in September. The December increase continues a pattern of monthly revisions that reflect the company’s effort to keep margins aligned with volatile international oil markets.
Petrobras attributes the hike to higher input costs, driven by rising crude oil prices and a stronger Brazilian real against the U.S. dollar. Because jet fuel is priced in dollars, a stronger real translates into higher local‑currency costs, prompting Petrobras to adjust the price to preserve its margin profile.
Distributors will pass the cost increase on to airlines, which in turn may raise fuel expenses that account for roughly 36% of operating costs in Brazil. The higher fuel bill could lead to modest ticket price increases, especially during the Southern Hemisphere summer travel season when demand is already high.
The price change comes as Petrobras reported strong Q3 2025 results, with net income of $5.2 billion, a 28% rise from the prior quarter, and robust operating cash flow. The refining segment, which includes jet fuel, saw higher margins, although the company noted a decline in nine‑month revenue compared with the same period in 2024. Upstream production grew 17% year‑over‑year in Q3, supporting overall earnings momentum.
While the price adjustment itself did not trigger a direct market reaction, Petrobras was excluded from the top‑stock recommendation lists of major Brazilian brokerages such as XP, BTG, and Santander in early December, reflecting a broader shift in analyst focus rather than a reaction to the jet‑fuel hike.
Industry observers note that Petrobras’ pricing power is challenged by the International Air Transport Association’s call for lower jet‑fuel prices, citing the company’s dominant market position and high tax burden. The December increase may intensify scrutiny from airlines and regulators seeking more competitive pricing.
Overall, the 3.8% hike is part of Petrobras’ broader strategy to align jet‑fuel pricing with global market conditions while maintaining profitability in a sector that remains sensitive to input cost fluctuations and regulatory pressure.
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