Russian air transport agency accuses fuel providers of overcharging jet fuel prices

MOSCOW, August 21 (Itar-Tass) - Russia’s federal air transport agency, Rosaviatsiya, has accused providers of overcharging jet fuel prices, thus causing air fares to fly high. “This summer’s sudden surge in the prices of jet kerosene had not been foreseen in the air carriers’ business plans,” Rosaviatsiya said in a statement. “Apparently, in the near future fuel price hikes will put a heavy financial burden on the main consumers of domestic air carriers’ services - the passengers.” Rosaviatsiya said that “fuel providers’ groundless policies are undermining the normal business of air carriers, in particular, those already under western sanctions.” It identified “a significant growth in the prices of jet kerosene in a number of Russian airports.” In June-August 2014 the price of one tonne of jet kerosene at 30 Russian airports went by 6-7 percent on the average - from 1,000 roubles to 4,000 roubles (30 dollars to 120 dollars) in value terms. Fuel price hikes were also observed at the airports of the Volga River area, in southern Russia and in Siberia. “Price rises make Russian air carriers less competitive on the international markets and may harm traffic growth parameters on regional routes. In the meantime, the government this year has allocated nearly 9 billion roubles to develop precisely this segment of the air transport market,” Rosaviatsiya said. Learn more on itar-tass.com