The price of jet fuel at the St. Petersburg International Commodity Exchange (St. Petersburg Exchange) has reached a new historical high, exceeding 120,000 rubles per ton. This is evidenced by data from the exchange platform. At the end of trading on August 20, the cost of aviation fuel was 121,864 rubles per ton. The previous high was reached in early May at 90,401 rubles per ton. Since the beginning of the year, jet fuel has increased in price by 1.6 times.
The off-exchange price of jet fuel is also rising, according to data from the St. Petersburg Exchange. As of August 19 (the latest available data), the cost of aviation fuel was 110,401 rubles per ton. Since the beginning of the week, the quote has increased by 8%, and since the start of the year, it has risen 1.5 times. The highest price level in off-exchange trading was recorded in early July at 117,337 rubles per ton.
Jet fuel prices in Russia began to rise in March this year, in tandem with wholesale prices for other types of petroleum products. At that time, fuel prices in the country increased due to a rise in exports amidst armed conflict in the Middle East and the resultant increase in global prices. In the following months, a significant reason for the price increase was the reduction in oil processing in Russia due to attacks on refineries.
The rise in gasoline and diesel fuel prices on the exchange halted in late July and early August after a series of measures were implemented. The government imposed a complete ban on the export of gasoline and diesel, while oil companies increased the throughput of operating refineries to maximum levels, shortened the duration of current repairs, postponed scheduled maintenance to a later date, and directed previously accumulated fuel reserves to the market. Additionally, the import of petroleum products was expanded, and the production of lower environmental class fuel was increased. Furthermore, to fill the domestic market, the government reduced the sales norm for gasoline on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
A key regulatory measure in the jet fuel market was the introduction of a ban on the export of jet fuel starting June 1 until November 30, 2026. Exceptions were made for fuel in technological storage used by aircraft in transit, batches of jet fuel that were placed under customs procedures prior to the ban coming into effect, as well as volumes supplied under intergovernmental agreements.
The current price increase is attributed to the limited supply of jet fuel in the market due to planned and unplanned repairs at refineries and complications in delivery logistics amid seasonal demand increases, according to Dmitry Baranov, a leading expert at Finam Management. He also notes that the number of Russian refineries producing jet fuel is fewer than those producing gasoline and diesel, highlighting that the temporary downtime of several refineries in Central Russia has a more significant impact on the jet fuel market, particularly with the concentration of air traffic in the Moscow region. Meanwhile, expanding the supply of jet fuel through imports and lowering quality due to strict specifications is challenging, Baranov observes.
The off-exchange price of jet fuel is also rising, according to data from the St. Petersburg Exchange. As of August 19 (the latest available data), the cost of aviation fuel was 110,401 rubles per ton. Since the beginning of the week, the quote has increased by 8%, and since the start of the year, it has risen 1.5 times. The highest price level in off-exchange trading was recorded in early July at 117,337 rubles per ton.
Jet fuel prices in Russia began to rise in March this year, in tandem with wholesale prices for other types of petroleum products. At that time, fuel prices in the country increased due to a rise in exports amidst armed conflict in the Middle East and the resultant increase in global prices. In the following months, a significant reason for the price increase was the reduction in oil processing in Russia due to attacks on refineries.
The rise in gasoline and diesel fuel prices on the exchange halted in late July and early August after a series of measures were implemented. The government imposed a complete ban on the export of gasoline and diesel, while oil companies increased the throughput of operating refineries to maximum levels, shortened the duration of current repairs, postponed scheduled maintenance to a later date, and directed previously accumulated fuel reserves to the market. Additionally, the import of petroleum products was expanded, and the production of lower environmental class fuel was increased. Furthermore, to fill the domestic market, the government reduced the sales norm for gasoline on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
A key regulatory measure in the jet fuel market was the introduction of a ban on the export of jet fuel starting June 1 until November 30, 2026. Exceptions were made for fuel in technological storage used by aircraft in transit, batches of jet fuel that were placed under customs procedures prior to the ban coming into effect, as well as volumes supplied under intergovernmental agreements.
The current price increase is attributed to the limited supply of jet fuel in the market due to planned and unplanned repairs at refineries and complications in delivery logistics amid seasonal demand increases, according to Dmitry Baranov, a leading expert at Finam Management. He also notes that the number of Russian refineries producing jet fuel is fewer than those producing gasoline and diesel, highlighting that the temporary downtime of several refineries in Central Russia has a more significant impact on the jet fuel market, particularly with the concentration of air traffic in the Moscow region. Meanwhile, expanding the supply of jet fuel through imports and lowering quality due to strict specifications is challenging, Baranov observes.
Another reason for the price increase is the opacity of the statistics, says Dmitry Prokofyev, Director of External Communications at NEFT Research. The lack of data on jet fuel production creates an informational vacuum, which increases the nervousness of market participants, he believes.
The Ministry of Energy reported on August 10 that the production of jet fuel this month is expected to be at the level of August 2025 and 4% higher than the level in July 2026. The ministry noted that jet fuel stocks in the country at the beginning of August were at a "standard level," and the entire volume of consumption would be met through production. However, the Ministry of Energy did not specify the volumes of jet fuel production or stocks.
Prices for jet fuel may continue to rise until repairs at the refineries are completed, Prokofyev believes. Baranov suggests that a price decrease is possible "closer to mid-autumn," after the high-demand period ends.
For a rapid stabilization of prices, the government needs to implement new regulatory measures, experts argue. The ban on jet fuel exports is a necessary but insufficient measure amidst declining oil processing, they believe. According to Prokofyev and Baranov, new measures could include adjustments to exchange rules and direct fuel deliveries to end consumers. Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association, suggests that the government may introduce a series of regulatory measures as early as next week.
Tereshkin believes that importing jet fuel into Russia could be an effective measure. However, subsidies for increasing payments to airlines under the damping mechanism will be required, he clarifies.
The impact of rising fuel prices on airfare is expected to be limited, according to Oleg Panteleev, Executive Director of Aviaport. He states that prices are currently primarily determined by the balance of supply and demand. Several years ago, airlines could increase rates without significantly impacting sales volumes, but now they are unable to pass additional costs onto passengers, the expert notes. An essential factor influencing airlines' economics will remain the damping mechanism, Panteleev adds.
Source: Vedomosti
The Ministry of Energy reported on August 10 that the production of jet fuel this month is expected to be at the level of August 2025 and 4% higher than the level in July 2026. The ministry noted that jet fuel stocks in the country at the beginning of August were at a "standard level," and the entire volume of consumption would be met through production. However, the Ministry of Energy did not specify the volumes of jet fuel production or stocks.
Prices for jet fuel may continue to rise until repairs at the refineries are completed, Prokofyev believes. Baranov suggests that a price decrease is possible "closer to mid-autumn," after the high-demand period ends.
For a rapid stabilization of prices, the government needs to implement new regulatory measures, experts argue. The ban on jet fuel exports is a necessary but insufficient measure amidst declining oil processing, they believe. According to Prokofyev and Baranov, new measures could include adjustments to exchange rules and direct fuel deliveries to end consumers. Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association, suggests that the government may introduce a series of regulatory measures as early as next week.
Tereshkin believes that importing jet fuel into Russia could be an effective measure. However, subsidies for increasing payments to airlines under the damping mechanism will be required, he clarifies.
The impact of rising fuel prices on airfare is expected to be limited, according to Oleg Panteleev, Executive Director of Aviaport. He states that prices are currently primarily determined by the balance of supply and demand. Several years ago, airlines could increase rates without significantly impacting sales volumes, but now they are unable to pass additional costs onto passengers, the expert notes. An essential factor influencing airlines' economics will remain the damping mechanism, Panteleev adds.
Source: Vedomosti
