FAS will check information on the rise in price of aviation kerosene

Photo of author

By admin

The Federal Antimonopoly Service (FAS) of Russia will check the information on the increase in prices for jet fuel, and if confirmed, it will establish the reasons for such an increase. This was reported on the service website on Wednesday, August 12.

“Undoubtedly, it is necessary to stop abuses in this area, given that the cost of fuel directly affects the final cost of air tickets and the availability of air services for citizens of the Russian Federation,” said Armen Khanyan, head of the Russian fuel and energy complex and chemical industry.

The department believes that the situation may be caused by “the unwillingness of airlines to purchase jet fuel on the exchange, and instead buy it at auction.”

The FAS notes that, as of August 10 of this year, the wholesale (exchange) price of jet fuel was 30% lower than the price fixed on the same date in 2019. According to the monitoring constantly conducted by the antimonopoly service, airlines have no difficulties in providing aviation kerosene at airports.

Earlier on Wednesday, Izvestia, with reference to a letter addressed to the Minister of Transport of Russia, Yevgeny Dietrich, wrote that the Russian Association of Air Transport Operators (AVET) asked the Ministry of Transport to organize a joint inspection of the pricing of aviation kerosene at the country’s airports with the Ministry of Energy and the FAS.

According to the results of tenders held by air carriers, the increase in prices for kerosene in August compared to July was: at Koltsovo (Yekaterinburg) airports – 62.1%, in Domodedovo and Zhukovsky near Moscow – 33.4% and 36%, respectively, and in Krasnodar air harbor – 48.4%.

AVET believes that price changes will neutralize the government’s decisions to rebuild the aviation industry after the crisis.

Rosneft said that since the beginning of the second quarter of this year, the price of jet fuel at Moscow airports has dropped by 40–46%.

Izvestia’s interlocutors in the air transportation industry linked the growth to the opening of international flights. Fuel companies raise prices every year at the start of the high season, when passenger traffic and airline revenues increase.

Later that day, the Ministry of Transport reported that, together with the Ministry of Energy, FAS and suppliers, they would discuss a jump in the cost of aviation fuel next week.

Leave a Comment