OREANDA-NEWS. December 07, 2009. The lower price of jet fuel at the Sheremetyevo Airport in Moscow than at other Russian and foreign airports incited the air company Aeroflot sharply increase its purchase of fuel in Moscow. The saving desire has resulted in serious problems – for the second time this week the air company is facing the risk of being left without fuel as the fuel suppliers could not cope with the growing demand. Aeroflot’s supply of jet fuel was only enough for one day instead of required three days. However, the air company promises that it will not cancel its flights.

Market participants point out that several factors lead to the current shortage of fuel. In November, Aeroflot sharply increased the purchase of jet fuel at its base airport. The matter is that owing to direct contracts the price of jet fuel for Aeroflot in Moscow was lower than in many western and Russian airports. The air company took this advantage and used all its limits for purchasing jet fuel just four days before the end of the month.

According to Vladimir Spiridonov, General Director of Aerofuels Group, Aeroflot’s desire to buy large amounts of fuel in Moscow is understandable, because in November the price of jet fuel in European countries, for example, was some 6.5–7% higher than in Russia. “Now, jet fuel in Russia is still cheaper,” said Mr. Spiridonov.

The problem was aggravated, according to market participants, by the lack of fuel supplies since the beginning of the month from the Moscow Oil Refinery, which has direct fuel supply contracts with Aeroflot. Experts think that the main reason behind the shortage of jet fuel is the recent reorientation of most producers (the Moscow Oil Refinery and other refineries) to production of winter motor diesel fuel.

Reportedly, the situation with fuel at the Sheremetyevo Airport was settled early this week thanks to supplies of jet fuel from the reserve fund of the Sheremetyevo refueling complex. At the same time, according to RBK Daily, Aeroflot had jet fuel for just one day instead of required three days. “There are and will be no cancellation of Aeroflot flights,” an official representative of the air company said to RBK Daily. On Monday, the head of the Federal Air Transport Agency of Russia sent a letter to Aeroflot with a request to explain the absence of a three-day reserve of fuel, but, as of Wednesday evening, there was no reply.

TNK-BP reported that the demand for jet fuel in November at the Sheremetyevo Airport went up substantially and the entire contracted monthly volume of jet fuel was supplied ahead of the schedule. Apart from that, a number of fuel suppliers of the Sheremetyevo refueling complex could not deliver jet fuel to the airport in due time. TNK-BP was informed on the situation on Friday, November 27 and sent all of its temporarily free volume of jet fuel to the airport. According to Alexander Gladkevich, Head of the performance unit Jet Fuel, TNK-BP, the company supplied 30% more jet fuel to the Sheremetyevo Airport in November than scheduled. “Now, TNK-BP is conducting negotiations on increasing the supply of jet fuel to the airport in December, because the volume of air transportation will significantly grow towards the New Year holidays and the airports and suppliers must be ready to this growth,” said he.