Petrobras Reduces Cost of Aviation Gas by 15.7%

DALLAS - This week, Brazilian oil company Petrobras reduced the price of aviation gas oil (AVGAS) for distributors by 15.7%. It is a trend also seen by Jet Fuel.

It's the second time in recent weeks that this state-run oil company has decided to lower gasoline prices for the aviation industry, following a reduction of 5.7% at the beginning of August.

AVGAS powers traditional propeller aircraft used for aerobatics, flying clubs, or flight schools. Not included are turbojet aircraft, whose turbine engines burning Jet A1 fuel to power their propellers.

While AVGAS is used for piston-engine aircraft, which fly through the rotation of the propellers, which generate the thrust, Jet Fuel is used for aircraft with turbine-engine jets that fly with the thrust of expelled air.

Jet Fuel is a colorless, refined kerosene-based type of fuel that is used for airplanes with turbine engines, like jet engines and turboprops. Jet Fuel is available in two types, too. Jet A and Jet A1.

Jet Fuel Costs

The need for Jet-A increased in the second quarter (Q2) of 2022 due to the reintroduction of commercial air travel worldwide. Additionally, diesel fuel was in high demand due to the increasing freight and shipping sectors. Due to a lack of supply, both industries must pay more for fuel.

Following the Q2 price peaks as a result of high expenses, high travel demand a two-year hiatus, and a finite number of flights, airline tickets began to plummet in July. Compared to June of this year, fares decreased by 7.8%.

The decrease in airfare in July coincided with a drop in U.S. jet fuel costs, which, according to the Energy Information Administration, were down about 25% from their peak in the middle of Q2. Aviation experts also point out that ticket prices will continue to decline into the fall as the summer travel demand and jet fuel prices fall.

According to the International Air Transport Association (IATA), the average pre-summer price of jet fuel was roughly US$4.15 per gallon globally, 149% more expensive than it was a year ago.

The jet fuel price ended last week up 8.1% at US$155.2/bbl.

Jet A and Jet A1

Although the two types of jet fuel have certain different manufacturing requirements, both can be used to power turbine-engined aircraft. The main differences between Jet A and Jet A1 are:

• Freezing points: Jet A freezing point is -40 °C, while Jet A1 freezes at -47 °C The lower freezing point of Jet A1 makes it more suitable for international long-haul flights, especially those overflying polar routes.
• Additives: Jet A does not regularly include static dissipator additives. These additives help to decrease the static charges that could form due to the movement of Jet Fuel. Jet A1 mostly contains static dissipator additives.
• Region: Jet A is mainly used in the U.S., while Jet A1 is more common in the rest of the world.

Featured image: Petrobras