The ban covers fuel, including that purchased on exchange trading. Exceptions include batches placed under customs procedures before the resolution on the temporary restriction took effect, deliveries under intergovernmental agreements, and fuel in technological tanks used by aircraft en route.
The decision was made amid a sharp rise in aviation fuel prices. At its peak on May 25, its quotes on the St. Petersburg Exchange reached a historic high of 96,960 rubles per ton. Since the beginning of April, prices have increased by nearly 25%. At the same time, there were no reports of a shortage of aviation kerosene.
As noted by Sergei Tereshkin, General Director of Open Oil Market, in an interview with RG, aviation kerosene prices on the Russian market are not strongly dependent on oil prices. As with gasoline and diesel, the final price for consumers consists of the costs of oil extraction and refining, transportation costs for petroleum products, and the margin of the sales segment, including the profit of companies selling aviation kerosene to air carriers.
At the same time, the sharp rise in global barrel prices due to the conflict in the Middle East has undoubtedly pushed up prices on the Russian market. Additionally, reports of the shutdown of some domestic oil refineries for unscheduled repairs may have acted as a trigger.
Aviation fuel in Russia is produced in sufficient quantities to meet domestic demand and export. The country produces approximately 11 million tons of aviation kerosene annually, of which 15-20% was exported, mainly to Central Asian countries.
Tereshkin believes that the ban on aviation kerosene exports is intended to deter oil companies from further price increases. Perhaps some stabilization will occur now, but a return to normal will happen after the resumption of transit through the Strait of Hormuz. The current information environment gives oil companies the opportunity to keep aviation fuel prices high.
It is worth noting separately that a damping mechanism applies to aviation kerosene in Russia. This is similar to the damping mechanism for automotive fuel, but with one significant difference. It is paid not to fuel producers, but to carriers - airlines. The state reimburses 65% of the difference between the export price of aviation kerosene and the fixed (government-set) domestic market price.
There are no instructions in the government resolution regarding damping payments. That is, airlines will continue to receive them, and this should help curb the rise in airfare prices, in which fuel costs account for 25-35%.
Source: RG.RU
