The price of aviation kerosene at the St. Petersburg International Mercantile Exchange (St. Petersburg Exchange) has reached a new historical high, exceeding 120,000 RUB/ton. This is evidenced by data from the exchange platform. As of the trading results on August 20, the cost of aviation fuel amounted to 121,864 RUB/ton. The previous maximum was recorded in early May at 90,401 RUB/ton. Since the beginning of the year, aviation kerosene prices have increased by 1.6 times.
The off-exchange price of aviation kerosene is also rising, according to data from the St. Petersburg Exchange. On August 19 (the latest available data), the cost of aviation fuel was 110,401 RUB/ton. Since the start of the week, the quote has increased by 8%, and since the beginning of the year it has risen by 1.5 times. The maximum price level in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Aviation kerosene prices in Russia began to rise in March of this year, alongside wholesale prices for other types of oil products. At that time, fuel prices in the country rose due to increased exports amid the armed conflict in the Middle East and the resulting surge in global prices. In the following months, a significant reason for the price increase was the decline in oil refining in Russia due to attacks on oil refineries.
The rise in prices for gasoline and diesel fuel on the exchange halted in late July and early August following a series of measures. The government imposed a complete ban on the export of gasoline and diesel fuel, while oil companies ramped up the utilization of existing refineries to maximum levels, shortened the timelines for current repairs, postponed planned maintenance to later dates, and also directed previously accumulated fuel stocks to the market. Additionally, the import of oil products was expanded and the production of lower environmental class fuel was increased. Moreover, to support the domestic market, the government reduced the mandatory sales ratio of gasoline on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
The main regulatory measure in the aviation fuel market was the introduction of a ban on the export of aviation kerosene, effective June 1, until November 30, 2026. An exception was made for fuel in technological containers used by aircraft en route, batches of aviation kerosene placed under customs procedures before the ban took effect, and volumes supplied under intergovernmental agreements.
The current price rise is attributed to the limited volume of aviation fuel on the market due to both scheduled and unscheduled repairs at refineries and the complications in supply logistics against the backdrop of seasonal demand growth, says Dmitry Baranov, a leading expert at Finam Management. The number of Russian refineries producing aviation kerosene is fewer than those producing gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of flights in the Moscow region, the temporary downtime of several refineries in Central Russia has a more significant impact on the aviation kerosene market than on the gasoline and diesel markets, the expert points out. At the same time, expanding the supply of aviation kerosene through imports is complicated due to strict specifications, Baranov remarks.
The off-exchange price of aviation kerosene is also rising, according to data from the St. Petersburg Exchange. On August 19 (the latest available data), the cost of aviation fuel was 110,401 RUB/ton. Since the start of the week, the quote has increased by 8%, and since the beginning of the year it has risen by 1.5 times. The maximum price level in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Aviation kerosene prices in Russia began to rise in March of this year, alongside wholesale prices for other types of oil products. At that time, fuel prices in the country rose due to increased exports amid the armed conflict in the Middle East and the resulting surge in global prices. In the following months, a significant reason for the price increase was the decline in oil refining in Russia due to attacks on oil refineries.
The rise in prices for gasoline and diesel fuel on the exchange halted in late July and early August following a series of measures. The government imposed a complete ban on the export of gasoline and diesel fuel, while oil companies ramped up the utilization of existing refineries to maximum levels, shortened the timelines for current repairs, postponed planned maintenance to later dates, and also directed previously accumulated fuel stocks to the market. Additionally, the import of oil products was expanded and the production of lower environmental class fuel was increased. Moreover, to support the domestic market, the government reduced the mandatory sales ratio of gasoline on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
The main regulatory measure in the aviation fuel market was the introduction of a ban on the export of aviation kerosene, effective June 1, until November 30, 2026. An exception was made for fuel in technological containers used by aircraft en route, batches of aviation kerosene placed under customs procedures before the ban took effect, and volumes supplied under intergovernmental agreements.
The current price rise is attributed to the limited volume of aviation fuel on the market due to both scheduled and unscheduled repairs at refineries and the complications in supply logistics against the backdrop of seasonal demand growth, says Dmitry Baranov, a leading expert at Finam Management. The number of Russian refineries producing aviation kerosene is fewer than those producing gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of flights in the Moscow region, the temporary downtime of several refineries in Central Russia has a more significant impact on the aviation kerosene market than on the gasoline and diesel markets, the expert points out. At the same time, expanding the supply of aviation kerosene through imports is complicated due to strict specifications, Baranov remarks.
Another reason for the price increase is the lack of statistical transparency, says Dmitry Prokofyev, Director of External Communications at NEFT Research. The absence of data on aviation kerosene production creates an information vacuum, which heightens nervousness among market participants, he believes.
The Ministry of Energy reported on August 10 that aviation kerosene production is expected to match the levels of August 2025 and be 4% higher than the July 2026 level. The ministry's statement noted that aviation kerosene stocks in the country were at a "standard level" at the beginning of August, and the entire volume of consumption would be satisfied by domestic production. The Ministry did not specify the volumes of aviation fuel production and stocks.
Prices for aviation kerosene may continue to rise until repairs at refineries are completed, Prokofyev believes. Baranov suggests that price reductions are possible "closer to mid-autumn," after the peak demand period concludes.
Experts agree that for a rapid stabilization of prices, the government needs to implement new regulatory measures. The ban on aviation kerosene exports is a necessary but insufficient measure against the backdrop of declining oil refining, they argue. According to Prokofyev and Baranov, new measures could include adjustments to exchange rules and direct fuel deliveries to end consumers. Dmitry Gusev, deputy chair of the advisory board of the "Reliable Partner" association, speculates that the government may adopt a series of regulatory measures as early as next week.
Tereshkin believes that an effective measure could be the import of aviation fuel into Russia. However, subsidies will be required to increase payments to airlines under the damping mechanism, he clarifies.
The impact of rising fuel prices on air ticket costs will be limited, says Oleg Panteleyev, Executive Director of "AviaPort." According to him, prices are currently primarily determined by the balance of supply and demand. A few years ago, airlines had the ability to raise rates without significantly impacting sales volumes, but now they cannot pass additional costs onto passengers, the expert explains. An important factor that will continue to influence airline economics will remain the damping mechanism, Panteleyev adds.
Source: Vedomosti
The Ministry of Energy reported on August 10 that aviation kerosene production is expected to match the levels of August 2025 and be 4% higher than the July 2026 level. The ministry's statement noted that aviation kerosene stocks in the country were at a "standard level" at the beginning of August, and the entire volume of consumption would be satisfied by domestic production. The Ministry did not specify the volumes of aviation fuel production and stocks.
Prices for aviation kerosene may continue to rise until repairs at refineries are completed, Prokofyev believes. Baranov suggests that price reductions are possible "closer to mid-autumn," after the peak demand period concludes.
Experts agree that for a rapid stabilization of prices, the government needs to implement new regulatory measures. The ban on aviation kerosene exports is a necessary but insufficient measure against the backdrop of declining oil refining, they argue. According to Prokofyev and Baranov, new measures could include adjustments to exchange rules and direct fuel deliveries to end consumers. Dmitry Gusev, deputy chair of the advisory board of the "Reliable Partner" association, speculates that the government may adopt a series of regulatory measures as early as next week.
Tereshkin believes that an effective measure could be the import of aviation fuel into Russia. However, subsidies will be required to increase payments to airlines under the damping mechanism, he clarifies.
The impact of rising fuel prices on air ticket costs will be limited, says Oleg Panteleyev, Executive Director of "AviaPort." According to him, prices are currently primarily determined by the balance of supply and demand. A few years ago, airlines had the ability to raise rates without significantly impacting sales volumes, but now they cannot pass additional costs onto passengers, the expert explains. An important factor that will continue to influence airline economics will remain the damping mechanism, Panteleyev adds.
Source: Vedomosti
