The price of aviation kerosene on the St. Petersburg International Commodity Exchange (St. Petersburg Exchange) has reached a new historical high, exceeding 120,000 RUB/ton. This is evidenced by data from the exchange platform. By the close of trading on August 20, the cost of aviation fuel was 121,864 RUB/ton. The previous high was recorded in early May at 90,401 RUB/ton. Since the start of the year, aviation kerosene has increased in price 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 beginning of the week, the quotation has increased by 8%, and since the start of the year, it has risen by 1.5 times. The highest price level in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Prices for aviation kerosene in Russia began to rise in March of this year, similar to wholesale prices for other types of petroleum products. At that time, fuel in the country became more expensive due to increased exports amid the armed conflict in the Middle East and the resulting rise in global prices. In the following months, a key reason for the price increase was the reduction in oil refining in Russia due to attacks on oil refineries.
The rise in prices for gasoline and diesel fuel on the exchange halted at the end of July and the beginning of August after a series of measures were implemented. The government imposed a complete ban on the export of gasoline and diesel fuel, while oil companies increased the load on operating refineries to maximum levels, shortened downtime for repairs, postponed planned maintenance to a later date, and directed previously accumulated fuel stocks to the market. Additionally, the import of petroleum products was expanded, and the production of lower environmental class fuels was increased. Furthermore, to fill the domestic market, the government reduced the sales norm for gasoline on the exchange from 15% to 10% during 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 from June 1 until November 30, 2026. Exceptions were made for fuel in technological containers used by aircraft during transit, batches of aviation kerosene subjected to customs procedures before the ban took effect, as well as volumes supplied under intergovernmental agreements.
The current price increase is attributed to the limited volume of aviation fuel in the market due to scheduled and unscheduled repairs at refineries, along with logistical complications in supply due to seasonal demand growth, says Dmitry Baranov, a leading expert at Finam Management Company. The number of Russian refineries producing aviation kerosene is fewer than those producing automotive gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of airline flights in the Moscow region, temporary downtimes at several refineries in Central Russia have a more significant impact on the aviation kerosene market than on the gasoline and diesel markets, the expert points out. Meanwhile, the ability to expand aviation kerosene supply through imports and quality reductions is challenging due to stringent specifications, Baranov adds.
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 beginning of the week, the quotation has increased by 8%, and since the start of the year, it has risen by 1.5 times. The highest price level in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Prices for aviation kerosene in Russia began to rise in March of this year, similar to wholesale prices for other types of petroleum products. At that time, fuel in the country became more expensive due to increased exports amid the armed conflict in the Middle East and the resulting rise in global prices. In the following months, a key reason for the price increase was the reduction in oil refining in Russia due to attacks on oil refineries.
The rise in prices for gasoline and diesel fuel on the exchange halted at the end of July and the beginning of August after a series of measures were implemented. The government imposed a complete ban on the export of gasoline and diesel fuel, while oil companies increased the load on operating refineries to maximum levels, shortened downtime for repairs, postponed planned maintenance to a later date, and directed previously accumulated fuel stocks to the market. Additionally, the import of petroleum products was expanded, and the production of lower environmental class fuels was increased. Furthermore, to fill the domestic market, the government reduced the sales norm for gasoline on the exchange from 15% to 10% during 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 from June 1 until November 30, 2026. Exceptions were made for fuel in technological containers used by aircraft during transit, batches of aviation kerosene subjected to customs procedures before the ban took effect, as well as volumes supplied under intergovernmental agreements.
The current price increase is attributed to the limited volume of aviation fuel in the market due to scheduled and unscheduled repairs at refineries, along with logistical complications in supply due to seasonal demand growth, says Dmitry Baranov, a leading expert at Finam Management Company. The number of Russian refineries producing aviation kerosene is fewer than those producing automotive gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of airline flights in the Moscow region, temporary downtimes at several refineries in Central Russia have a more significant impact on the aviation kerosene market than on the gasoline and diesel markets, the expert points out. Meanwhile, the ability to expand aviation kerosene supply through imports and quality reductions is challenging due to stringent specifications, Baranov adds.
Another reason for the rising prices is the lack of statistical transparency, says Dmitry Prokofiev, Director of External Communications at NEFT Research. The absence of data on aviation kerosene production creates an information vacuum that heightens market participants' anxiety, he believes.
The Ministry of Energy reported on August 10 that aviation kerosene production this month is expected to reach levels similar to August 2025, and be 4% higher than in July 2026. The ministry's statement indicated 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 met through production. The Ministry of Energy did not specify the volumes of aviation fuel production or stocks.
Prices for aviation kerosene may continue to rise until repairs at refineries are completed, Prokofiev believes. Baranov suggests that a price decrease may be possible "closer to mid-autumn," after the high-demand period ends.
For rapid price stabilization, experts state that the government needs to adopt new regulatory measures. The ban on aviation kerosene exports is a necessary but insufficient measure given the reduction in oil refining, they argue. According to Prokofiev and Baranov, new measures could include adjustments to exchange rules and direct fuel supplies to end consumers. Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association, speculates that the government may implement a series of regulatory measures as early as next week.
According to Tereshkin, an effective measure could be the import of aviation fuel into Russia. However, this would require subsidies to increase payments to airlines under the damping mechanism, he clarifies.
The impact of rising fuel prices on ticket prices will be limited, suggests Oleg Panteliev, Executive Director of Aviaport. He states that current prices are primarily determined by the balance of supply and demand. Several years ago, airlines had the opportunity to raise tariffs without significantly affecting sales volumes, but now they cannot pass additional costs on to passengers, explains the expert. The damping mechanism will remain an important factor influencing airlines' economics, adds Panteliev.
Source: Vedomosti
The Ministry of Energy reported on August 10 that aviation kerosene production this month is expected to reach levels similar to August 2025, and be 4% higher than in July 2026. The ministry's statement indicated 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 met through production. The Ministry of Energy did not specify the volumes of aviation fuel production or stocks.
Prices for aviation kerosene may continue to rise until repairs at refineries are completed, Prokofiev believes. Baranov suggests that a price decrease may be possible "closer to mid-autumn," after the high-demand period ends.
For rapid price stabilization, experts state that the government needs to adopt new regulatory measures. The ban on aviation kerosene exports is a necessary but insufficient measure given the reduction in oil refining, they argue. According to Prokofiev and Baranov, new measures could include adjustments to exchange rules and direct fuel supplies to end consumers. Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association, speculates that the government may implement a series of regulatory measures as early as next week.
According to Tereshkin, an effective measure could be the import of aviation fuel into Russia. However, this would require subsidies to increase payments to airlines under the damping mechanism, he clarifies.
The impact of rising fuel prices on ticket prices will be limited, suggests Oleg Panteliev, Executive Director of Aviaport. He states that current prices are primarily determined by the balance of supply and demand. Several years ago, airlines had the opportunity to raise tariffs without significantly affecting sales volumes, but now they cannot pass additional costs on to passengers, explains the expert. The damping mechanism will remain an important factor influencing airlines' economics, adds Panteliev.
Source: Vedomosti
