IATA calls on Brazilian government and Petrobas to reduce price of jet fuel

The International Air Transport Association (IATA) has urged the Federal Government of Brazil and state-owned oil company Petrobas to review the pricing mechanism of ‘excessively high’ jet fuel costs in the country. Jet fuel currently represents around 40% of the total costs of national airlines in Brazil, around 10% higher than the world average, clarified Peter Cerda, IATA’s regional vice president of the Americas. “The monopoly position of Petrobas and the additional administrative costs charged by the supplier result in artificially inflated jet fuel prices,” he elaborated, noting that excessive fuel prices are further compounded by a government-imposed “heavy tax