THE Organization for Economic Co-operation and Development (OECD) calculated that the gain for consumers from an eventual increase in the number of distributors of fuel of aviation in airports of the country could reach 1.3 billion reais in the next 10 years, according to a survey by the entity, in collaboration with the Administrative Council for Economic Defense (Cade).
The survey of more than 250 pages, and which also addresses other issues to improve competitiveness in the aviation and port sectors of the Brazilmentions that the figure could be obtained with an eventual reduction in the prices of air tickets, since aviation kerosene can reach 30% of the cost of airlines in the country, compared to an international average of 19%.
The issue of access to new entrants in the distribution of aviation fuel at airports in Brazil is being evaluated by Cade, with a 2014 case proposed by the distributor Gran Petro waiting to be resumed, after a request for a view from the councilor of the municipality, made in March.
The OECD study takes into account data from 2019, prior to the pandemic, with the international airports of Guarulhos, Brasília and Galeão (RJ).
“These airports were selected because they are or will soon be connected directly to aviation fuel pipelines and together they are responsible for about 1/3 of regular trips with a Brazilian airport as origin”, states the survey.
In the study, the OECD recommends changes in Brazilian legislation that encourage the reversal of barriers to entry for new aviation fuel distributors. Today the three main companies in the sector are vibrate (VBBR3), root (ROOT4) and AirBP.
“These regulatory changes, if implemented, are expected to affect jet fuel markets, promoting entry and lowering prices through more competition,” the study states.
According to the survey, the annual benefit for passengers of a possible entry into the aviation fuel distribution market resulting from increased competition at the three airports is estimated at between 58.4 million and 88 million reais per year.
In guarulhosfor example, the benefit account in 10 years varies from 490.5 million to 739 million reais.
In Brasília, the estimated benefit is estimated at between 222 million and 334 million.
At Galeão, it is around 184 million to 278 million, considering variations in fuel price reductions of 2% to 3%.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
