The Federal Government of Brazil formalized a package of emergency measures to mitigate the impact of a 54.63% increase in aviation fuel prices announced by Petrobras. The roadmap, structured by the Ministry of Ports and Airports and the Ministry of Finance, aims to curb pressure on airfares and ensure connectivity amid volatility in the international oil market, as reported by our partner media Aeroin.
Petrobras will implement a transition scheme for distributors, limiting the immediate impact to 18%, with the remainder to be paid in six installments starting next July. As a financial complement, the Executive Branch authorized the use of Fundo Nacional de Aviação Civil (FNAC) resources to open a financing line of up to R$ 2.5 billion (~USD 500 million) per airline, specifically for fuel procurement. This operation will be managed by the National Bank for Economic and Social Development (BNDES), with companies assuming the transaction risk.
The relief plan also includes a R$ 1 billion credit line for working capital, with technical conditions to be established by the National Monetary Council and guaranteed by the Union. Concurrently, the government will issue a decree to eliminate PIS/Cofins tax rates on aviation fuel, representing an estimated direct reduction of R$ 0.07 per liter of fuel at Brazilian airports…
