Russian Jet A1

Russia produces and consumes a lot of Jet A1 aviation fuel, also known as kerosene. Since 2017, it has been exporting it too. Nevertheless, most fuel is consumed inside the country. Around 75% of the market belongs to the 3 largest manufacturers.

Jet A1 Manufacturers in Russia

In the first two months of 2020, before the pandemic broke out, Russia produced 1,948,000 tons of aviation kerosene. In 2019, 12,523,000 tons of this fuel were produced in the country.

The most part of this amount accounts for these companies:

• Rosneft
• Gazprom Neft
• Lukoil

However, the first manufacturer who was allowed to export Jet A1 was Tatneft. It produces this type of fuel at the Taneko refinery in Tatarstan. Tatneft obtained the export permission thanks to the decision made by the International Air Transport Association that was based on the report compiled by British Petroleum.

Today, the largest Russian Jet A1 exporter is Novatek. This manufacturer is responsible for 65,8% of the total volume of export shipments, which equals approximately 1,1 million tons. Novatek exports 100% of the Jet A1 fuel that it produces. The primary demand for this product comes from Scandinavia.

Rosneft, Gazprom Neft and other manufacturers have announced their plans to expand their export geography. They are thinking of selling Jet A1 to Asian countries, first of all China.

Jet A1 Price in Russia

At the moment of this text being written, the minimum price for Jet A1 in Russia was 41,250 rubles per 1 ton. This equals 540 American dollars or 456 Euros per 1 ton.

The average estimated cost of aviation kerosene in the Russian domestic market in 2019 was 45,346 rubles per ton. This exceeded the estimated cost of the product for export which equaled 41,028 rubles per ton by 10.5% or by 4,317. rubles per ton.