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Demonopolization in the fuel supply market made it possible to reduce the cost of services for refueling and storage, though kero cost in the Russian airports actually made equal to indexes of the European air terminals. We do not expect a significant growth of prices for kero in Russia if only there are no violent fluctuations in the currency market. Vladimir Spiridonov, Aerofuels Group General Director, told AviaPort about a current situation and perspectives of the development.
The Russian market has approached the world indicators
- What tendencies do we see now in the world jet fuel market?
- The jet kero cost in the world market has stabilized within a range from $490 to $530 a ton, if to judge upon the main on-exchange indicators. Consequently, in big airports the cost per ton for into-plane refueling makes average $530-570. At the same time all international oil companies hoped for a significant growth of aviation fuels cost in 2016. In the beginning of the year it was supposed that the price would be increased up to $650-700 per ton by December but the prognosis failed: in February-March of 2016 the price fell up to $330-350. I would like to remind that it is four times less than the prices level of a peak year of 2007.
The Russian market has much approached the world indicators. If even 3-4 years ago the jet kero cost when delivered to big airports made about 80% of the European prices, today there is practically no difference. It goes without saying that it is quite a pleasant fact for oil companies. Though, that, to put it mildly, is not a rather positive aspect for the Russian airlines which in the course of time have lost advantages in relation to the Western market players: today they have to buy kero in the domestic market at the world market prices. In the future that may impact the Russian air carriers competitiveness in international flights. But today, as we can see, the tendency is quite positive – the passenger flow has increased by 20%.