The situation on the aviation fuel market is not a restraining factor for developing the air transportation market

“Prices for aviation fuel are volatile and fluctuate seasonally. Overall, in many years prices for aviation kerosene were moderately increasing, but in 2016 dropped down by 7.8 % in comparison with 2015”.

Deputy Head of FAS Anatoly Golomolzin made this statement on 2 February 2017 at the VI International Conference – “Aviation Fuel 2017”.

In hips opinion, a favourable situation on the market is determined by institutional preconditions: Rules for non-discriminatory access are passed and there is ongoing antimonopoly control over the situation on the markets of aviation fuel and aviation fuel supply services. The airlines have three options to acquire fuel: directly from oil companies, by contracts concluded through the Exchange, or from operators of fuelling complexes in airports. Around two million tons of kerosene are traded through the Exchange annually. Moreover, most federal airports have several alternative competing fuelling complexes.

Anatoly Golomolzin stated: “Exchange trading is constantly improving. Consolidated exchange index and regional indices for the European part of Russia, Siberia and the Far East are published on a regular basis. They also publish the exchange index of prices for fuel consumption in the Moscow aviation hub, where, as it is known, the bulk of aviation fuel is consumed in Russia (MAU index). All big off-exchange transactions are registered at the Exchange, on the basis of them off-exchange indices are formed. The Exchange regularly publishes price indicators for comparable foreign markets (netbacks). All this enables us to have reliable price indicators on the domestic market”.

Efforts on improving the market are also undertaken within the Eurasian Economic Union (EAEU) and the CIS. Market pricing, particularly, based on exchange trading, is the key element of the concept of the EAEU Common Market.  Experts and companies are discussing development of the common exchange space. According to a decision of the Council of the Heads of CIS Governments and under the frame of EAEU Treaty, harmonized Rules for non-discriminatory access to airport services, including services of fuelling complexes, should be adopted.

Summing up, Anatoly Golomolzin emphasized that “the situation on the market of aviation fuel is stable and favorable, encouraging a growth of air carriage”.