Tuesday, September 06, 2011

Moscow: Authorities scramble to prevent aviation fuel shortages

by Evgeniya Chaykovskaya at 06/09/2011 16:06

Deputy Prime Minister Igor Sechin gathered government officials to formulate a response to looming fuel shortages at the nation’s airports on Tuesday. Media reports had earlier speculated that Moscow airports’ fuel reserves had dropped to critical levels over recent days. Sechin announced at the meeting that a 10-day fuel reserve was to be created for the capital’s airports.

Rosaviation had earlier said that they would call on Rosrezerv to send 180,000 tons of fuel to Moscow airports in order to avoid a collapse in flight scheduling. Vladimir Putin was set to sign the order if necessary, his press-secretary, Dmitry Peskov, said on Tuesday.

Fuel in airports running out?

Kommersant reported on Friday that there was only three days worth of fuel in the capital’s airports. Sheremetyevo reserves were reportedly boosted to four days -- about 20,000 tons -- but it was done at the expense of other Moscow airports. The fuel crisis in the airports was first reported on Sep. 2 when Moscow airports announced that there was a kerosene shortage and supplies would run out in several days’ time.

Reasons unknown

There is no consensus on how the fuel shortage developed and Russia Prosecutor General Yury Chaika has started investigations into the shortages.

Transport Minister Igor Levitin said on Monday that the deficit arose due a lack of supply offers on the market.

Oil industry experts say the main reason for fuel shortages is a sudden increase in fuel usage by the Defense Ministry, which bought some 100,000 tons a month over summer. The ministry, however, denies any increased volumes of purchases.

Deputy head of the State Duma transport committee, Sergei Gavrilov, told Kommersant that there are elements of “collusion and market monopolization,” as there was no objective reasons for the price hike. Kommersant also reported that sources in the airports’ fuel purchase departments as saying that “someone is trying to artificially create a deficit.”

Experts expect the situation to stabilize in September when the summer high season will finish and demand for air travel will fall.

http://themoscownews.com

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