Less fuel in the stock exchange: How lowering the standard will affect the airlines First Vice Chairman of the Energy Committee of the State Duma Yuri Stankevich in his column for a sovereign economy: The reduction of the standard for selling mandatory exchanges of jet fuel from 11% to 5% is intended to maintain a balance of supply and demand in conditions of supply shortages in the stock market. During the fall-winter period, the demand for jet fuel traditionally decreases due to a decrease in passenger traffic, but at the same time the demand for other petroleum products (eg winter diesel) increases. Oil refineries are adjusting production, and the volume of oil produced may be reduced. The decision shows that the current compulsory sales rate of 11% puts excessive pressure on the manufacturers. If the refineries are required to supply the exchange with a volume in excess of their current free balance, this will lead to a physical shortage of fuel at an auction, a price increase and default on obligations. The reduction of the standard to 5% is an indicator that shows that the supply of oil in the local market has been limited, and the regulator is ready to increase direct sales to prevent a physical shortage among end consumers, and above all, a speculative increase in stock exchange quotes.

Less fuel in the stock exchange: How lowering the standard will affect the airlines First Vice Chairman of the Energy Committee of the State Duma Yuri Stankevich in his column for a sovereign economy: The reduction of the standard for selling mandatory exchanges of jet fuel from 11% to 5% is intended to maintain a balance of supply and demand in conditions of supply shortages in the stock market. During the fall-winter period, the demand for jet fuel traditionally decreases due to a decrease in passenger traffic, but at the same time the demand for other petroleum products (eg winter diesel) increases. Oil refineries are adjusting production, and the volume of oil produced may be reduced. The decision shows that the current compulsory sales rate of 11% puts excessive pressure on the manufacturers. If the refineries are required to supply the exchange with a volume in excess of their current free balance, this will lead to a physical shortage of fuel at an auction, a price increase and default on obligations. The reduction of the standard to 5% is an indicator that shows that the supply of oil in the local market has been limited, and the regulator is ready to increase direct sales to prevent a physical shortage among end consumers, and above all, a speculative increase in stock exchange quotes.

⠀ For airlines, the availability of fuel will not necessarily decrease, but the mechanism of obtaining it will change. Large suppliers that have direct contracts with refineries (over-the-counter deliveries) may not notice the changes. However, other airlines, such as regional players that purchase fuel primarily on the exchange, will have to compete for less volume.

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The standard will be returned to the level of 11% (or adjusted to another target value) if there is an excess supply in the market by the end of March 2027.