The price of jet fuel at 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. As of the trading results on August 20, the cost of aviation fuel was 121,864 RUB/ton. The previous maximum was achieved in early May, at 90,401 RUB/ton. Since the beginning of the year, jet fuel prices have increased by 1.6 times.
The off-exchange price of jet fuel 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 start of the week, the quotation has increased by 8%, and since the beginning of the year, by 1.5 times. The highest level of prices in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Jet fuel prices in Russia began to rise in March of this year, mirroring the trend in wholesale prices for other types of petroleum products. At that time, fuel in the country became more expensive due to increased exports against the backdrop of armed conflict in the Middle East and the resultant rise in global prices. In the following months, a significant reason for the price increase was the decline in oil refining in Russia due to attacks on oil refineries.
The rise in gasoline and diesel prices on the exchange stalled at the end of July and early August following a series of measures. The government imposed a complete ban on the export of gasoline and diesel, while oil companies increased the capacity utilization of existing refineries to maximum levels, shortened the duration of ongoing repairs, postponed planned repairs to a later date, and supplied previously accumulated fuel reserves to the market. Additionally, the import of petroleum products was expanded, and the production of lower-grade fuel was increased. Furthermore, to fill the domestic market, the government reduced the trading norm for gasoline sales on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
The main regulatory measure in the jet fuel market was the introduction of a ban on jet fuel exports that took effect on June 1 and will last until November 30, 2026. Exceptions were made for fuel in technological containers used by aircraft in transit, batches of jet fuel that were under customs procedures before the ban took effect, and volumes supplied under intergovernmental agreements.
The current rise in prices is attributed to the limited supply of jet fuel on the market due to planned and unplanned repairs at refineries and the logistical challenges associated with increased seasonal demand, says Dmitry Baranov, a leading expert at Finam Management. The number of Russian refineries producing jet fuel is smaller than the number of plants producing automotive gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of flights in the Moscow region, the temporary idle capacity of several refineries in Central Russia has a more significant impact on the jet fuel market than on the gasoline and diesel markets, the expert points out. At the same time, it is difficult to expand the supply of jet fuel through imports and quality reduction due to stringent specifications, Baranov observes.
The off-exchange price of jet fuel 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 start of the week, the quotation has increased by 8%, and since the beginning of the year, by 1.5 times. The highest level of prices in off-exchange trading was recorded in early July at 117,337 RUB/ton.
Jet fuel prices in Russia began to rise in March of this year, mirroring the trend in wholesale prices for other types of petroleum products. At that time, fuel in the country became more expensive due to increased exports against the backdrop of armed conflict in the Middle East and the resultant rise in global prices. In the following months, a significant reason for the price increase was the decline in oil refining in Russia due to attacks on oil refineries.
The rise in gasoline and diesel prices on the exchange stalled at the end of July and early August following a series of measures. The government imposed a complete ban on the export of gasoline and diesel, while oil companies increased the capacity utilization of existing refineries to maximum levels, shortened the duration of ongoing repairs, postponed planned repairs to a later date, and supplied previously accumulated fuel reserves to the market. Additionally, the import of petroleum products was expanded, and the production of lower-grade fuel was increased. Furthermore, to fill the domestic market, the government reduced the trading norm for gasoline sales on the exchange from 15% to 10% for the period from July 1 to September 30, 2026.
The main regulatory measure in the jet fuel market was the introduction of a ban on jet fuel exports that took effect on June 1 and will last until November 30, 2026. Exceptions were made for fuel in technological containers used by aircraft in transit, batches of jet fuel that were under customs procedures before the ban took effect, and volumes supplied under intergovernmental agreements.
The current rise in prices is attributed to the limited supply of jet fuel on the market due to planned and unplanned repairs at refineries and the logistical challenges associated with increased seasonal demand, says Dmitry Baranov, a leading expert at Finam Management. The number of Russian refineries producing jet fuel is smaller than the number of plants producing automotive gasoline and diesel fuel, notes Sergey Tereshkin, CEO of Open Oil Market. Due to the concentration of flights in the Moscow region, the temporary idle capacity of several refineries in Central Russia has a more significant impact on the jet fuel market than on the gasoline and diesel markets, the expert points out. At the same time, it is difficult to expand the supply of jet fuel through imports and quality reduction due to stringent specifications, Baranov observes.
Another reason for the price increase is the lack of transparency in statistics, says Dmitry Prokofyev, Director of External Communications at NEFT Research. The absence of data on jet fuel production creates an information vacuum that heightens market participants' nervousness, he believes.
The Ministry of Energy reported on August 10 that jet fuel production for this month is expected to be at the level of August 2025 and 4% higher than the level in July 2026. The ministry's statement noted that jet fuel reserves in the country were at a "standard level" at the beginning of August, and the entire consumption volume would be met through production. However, the Ministry of Energy did not specify the volumes of jet fuel production or reserves.
Prices are likely to continue rising until refinery repairs are completed, Prokofyev believes. Baranov suggests that a price decline may be possible "closer to mid-autumn," after the high demand period concludes.
Experts believe that new regulatory measures are needed for quick price stabilization. The ban on jet fuel exports is a necessary but not sufficient measure amid declining oil refining, they argue. According to Prokofyev 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 roll out several regulatory measures as early as next week.
Tereshkin believes that importing jet fuel into Russia could be an effective measure. However, this would require subsidies to increase payments to airlines under a damping mechanism, he clarifies.
The impact of rising fuel prices on airline ticket costs will be limited, says Oleg Pantileev, Executive Director of Aviaport. According to him, prices are currently determined primarily by the balance of supply and demand. Several years ago, airlines had the ability to raise tariffs without significantly affecting sales volumes, but now they cannot pass additional costs onto passengers, the expert states. The damping mechanism will remain an important factor affecting airline economics, Pantileev adds.
Source: Vedomosti
The Ministry of Energy reported on August 10 that jet fuel production for this month is expected to be at the level of August 2025 and 4% higher than the level in July 2026. The ministry's statement noted that jet fuel reserves in the country were at a "standard level" at the beginning of August, and the entire consumption volume would be met through production. However, the Ministry of Energy did not specify the volumes of jet fuel production or reserves.
Prices are likely to continue rising until refinery repairs are completed, Prokofyev believes. Baranov suggests that a price decline may be possible "closer to mid-autumn," after the high demand period concludes.
Experts believe that new regulatory measures are needed for quick price stabilization. The ban on jet fuel exports is a necessary but not sufficient measure amid declining oil refining, they argue. According to Prokofyev 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 roll out several regulatory measures as early as next week.
Tereshkin believes that importing jet fuel into Russia could be an effective measure. However, this would require subsidies to increase payments to airlines under a damping mechanism, he clarifies.
The impact of rising fuel prices on airline ticket costs will be limited, says Oleg Pantileev, Executive Director of Aviaport. According to him, prices are currently determined primarily by the balance of supply and demand. Several years ago, airlines had the ability to raise tariffs without significantly affecting sales volumes, but now they cannot pass additional costs onto passengers, the expert states. The damping mechanism will remain an important factor affecting airline economics, Pantileev adds.
Source: Vedomosti
