The Brazilian government plans to charge oil companies operating in the country a change in the price of aviation kerosene (QAV) following a 12.6% reduction by Petrobras to the value. Speaking during a technical visit to the National Semi-arid Institute in Campina Grande, Minister of Mines and Energy, Alexandre Silveira declared that discussions would take place with airlines, to ensure that the reduction in fuel costs would be transferred onto customer rates. Silveira also emphasised the government’s focus on reducing fuel and cooking gas prices, along with an increased effort to attract investment in renewable sources for the Brazilian Northeast.
How the government is working to reduce the cost of aviation fuel
The government of Brazil recognises that the cost of aviation fuel impacts the aviation sector and ultimately consumers through airfare. In an effort to break the chain of ever-increasing costs, the Minister of Mines and Energy, Alexandre Silveira, called for oil companies to change the price of aviation kerosene. The call follows the recent reduction by oil company Petrobras. Silveira increased pressure on airlines to ensure the reduction in fuel prices is transferred on to consumer rates. The Minister also emphasized the Brazilian government’s goal of reducing the cost of fuel and cooking gas.
Plans for attracting investment and job creation in renewable energy in the Brazilian Northeast
Renewable energy is a critical area of focus for the Brazilian government, particularly in the northeastern region of Brazil. The Minister of Mines and Energy, Alexandre Silveira, highlighted the importance of attracting investment in renewable sources for the Brazilian Northeast. An increased investment would aid the region’s development and help lower energy costs for consumers. The Brazilian government also plans to hold transmission auctions, connecting the Northeast region’s energy production with the Southeast region, Brazil’s primary load center. It is predicted that successful transmission auctions could create as many as 100,000 direct and indirect jobs.
Ensuring the reductions in fuel prices are passed on to the consumer
While the Brazilian government’s efforts to reduce the cost of fuel and cooking gas are appreciated, it is essential to ensure these reductions reach the end-users. The National Agency for Petroleum, Natural Gas and Biofuels (ANP) and the National Agency for Civil Aviation (ANAC) are being monitored to ensure that fuel reductions are passed on to consumers. The Brazilian government remains optimistic that the efforts could generate thousands of jobs and ultimately help the Brazilian economy grow. The country’s successes in reducing fuel cost look to attract even more investment, pushing for greater results in the future.
Summary
The Brazilian government encourages the reduction of the cost of aviation fuel, and calls for oil companies to adjust prices to stop the increasing costs that impact the aviation sector and consumers. The Government aims to extend these reductions onto the consumers by working closely with airlines and regulating bodies. In addition, the priority of the government is to attract investment in renewable energy sources to lower energy costs for consumers and create job opportunities in the Brazilian Northeast region. The Brazilian Government remains optimistic about the prospects ahead of them, and they are monitoring regulating bodies to ensure that fuel reductions make their way to the final consumers.
How Brazilian Airlines and Petrobras Have Reduced Fuel Prices
Brazilian airlines such as GOL(GOLL4) and Azul(BLUE4) are facing tough economic times of late. With profits falling, airlines have been encouraging the Brazilian Government to reduce fuel costs. In September, Brazilian energy company Petrobras reduced the cost of aviation kerosene by 12.6%, giving airlines a much-needed break. Now the Brazilian Government plans to ensure that similar reductions can trickle down to consumers. By working closely with regulating bodies and companies like Petrobras, the Brazilian Government hopes to permanently lower fuel costs within the country. The Government also plans to hold transmission auctions to connect different energy regions in Brazil. It’s estimated that these auctions could create as many as 100,000 direct and indirect jobs. Brazil remains a leading emerging market in the energy sector, and investors are keeping a close eye on developments within the country.
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The government intends to charge the oil companies that operate in the country to present a change in the price of aviation kerosene (QAV), after Petrobras (PETR3;PETR4) to reduce the value by 12.6%, said the Minister of Mines and Energy, Alexandre Silveira, during a technical visit to the National Semi-arid Institute, in Campina Grande (PB).
According to him, there will also be talks with airlines, such as Gol (GOLL4) is blue (BLUE4) so that the reduction in the cost of fuel is reflected in the rates, with a benefit for the consumer. “Now we are also going to charge the airlines very rigorously, so that we reach the peak (the reduction of costs), because our effort to reduce fuel prices is not enough if these reductions are not captured in the chain.”
The minister also affirmed that the National Agency for Petroleum, Natural Gas and Biofuels (ANP) and the National Agency for Civil Aviation (Anac) are being monitored to ensure that the reductions are ultimately captured by consumers. “(The reduction) has to reach the end, it has to reach the pump, it has to reach the air ticket,” he stressed.
Silveira also highlighted the government’s efforts to reduce the price of fuel and cooking gas. “We are working hard for that,” he said, citing the change in Petrobras’ pricing policy, which, according to him, occurred while respecting the company’s governance.
Regarding electrical energy, the minister affirmed that he has been working to attract investment, mainly in renewable sources for the Brazilian Northeast. He also highlighted that the transmission auctions to be held should focus on assets that will transport the energy produced in the region to the Southeast, the country’s main load center.
“We will do the auctions to be able to transport all the clean and renewable energy from the Northeast to the load center. Therefore, we are very optimistic, we believe that this could generate thousands of jobs, just the transmission lines, we estimate around 100,000 direct and indirect jobs.”
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