China National Aviation Fuel Group Corp (CNAF) marked down the benchmark price of jet that it supplies to domestic airlines as from Sep 1 to Yuan 7,670/mt, down 1.5% or Yuan 115/mt from the previous month, according to a source with a domestic airline company.
The price cut was because of lower jet ex-refinery prices for September.
The actual price of jet supplied to domestic airlines is at the benchmark price plus a negotiated premium, which is settled by CNAF and airports. The price for domestic airlines in Guangzhou airport, for instance, is Yuan 7,670/mt plus a negotiated premium of Yuan 380/mt, which adds up to Yuan 8,050/mt. The price for Shenzhen airport is Yuan 8,010/mt, together with Yuan 340/mt of negotiated premium. The premiums for September are not changed.
Sinopec lowered the ex-refinery price of jet that it supplies to CNAF in September by Yuan 115/mt to Yuan 7,603/mt, and PetroChina reduced the price to Yuan 7,653/mt, also down by Yuan 115/mt, C1 reported earlier.
