Paraguayan Petroleum (Petropar) has opened an international tender worth up to US$24,308,840 to purchase aviation fuel for Silvio Pettirossi International Airport in Luque and Encarnación International Airport. The process, International Electronic Reverse Auction No. 14/26, ID No. 484,812, provides for the receipt of bids and the competitive stage on September 2, 2026.
The amount will be paid with Petropar’s public funds and covers only the purchase of the fuel, not the project’s physical infrastructure. The tender provides for up to 20,000 cubic meters in four items: two for Jet A-1 kerosene, used mainly by aircraft with turbine engines, and two for 100 LL aviation gasoline (AvGas), intended primarily for aircraft with piston engines.
Each item provides for between 1,500 and 5,000 cubic meters. The reference price is US$1,208.613 per cubic meter for Jet A-1 and US$1,222.271 for AvGas. Delivery will be made under DAP terms, under which the supplier assumes the costs and risks of transport to the destination, with tanker trucks unloading into the storage tanks designated by the state-owned company.
Petropar President William Wilka said the 20,000 cubic meters represent a projected supply for a given period, rather than a volume to be stored simultaneously. Receipt, storage, distribution and sale would take place progressively, according to demand and the implementation schedule.
The private company chosen to participate in the project is Royal Energy S.A., described by Petropar as a Paraguayan company. The state-owned company says it has operated in the sector since 2017, when it began distributing aviation products for a multinational company that continues to operate in the Paraguayan market. Royal Energy is expected to provide investment, infrastructure, technical expertise and operational capacity.
The plan provides for five aviation-fuel aeroplants in the country to expand the supply of Jet A-1 and AvGas in locations with limited or no coverage. Petropar, in turn, will be responsible for purchasing and selling the products.
Wilka said the operator was “awarded through a process” and identified Royal Energy as the partner. The state-owned company, however, did not clarify whether a call was issued to select the operator or whether the procedure was published on the portal of the National Directorate of Public Procurement (DNCP), Paraguay’s agency responsible for publishing public-procurement processes. It also did not provide the date of the agreement, its legal basis, the alliance’s duration or how risks and revenue would be divided.
The amount Royal Energy is expected to invest, the location and capacity of the five aeroplants, the planned equipment and the operating schedule have not been disclosed. The tender concerns the bulk purchase of fuel but does not detail the airport systems for storage, quality control, traceability, ramp fueling or transfer to aircraft.
Technical opinion DOC No. 096/2026, signed by Héctor Salinas, director of Petropar’s Operational Procurement Directorate (UOC), states that the state-owned company has no previous similar contracts or public information on transporting this type of product. As a result, the reference prices were calculated using international benchmarks. The measurement for invoicing will be taken at Petropar’s facility scale in Villa Elisa for Luque, or at an agreed nearby scale for Encarnación.