YEREVAN, APRIL 12, NOYAN TAPAN. At the April 11 sitting, the RA State Commission on Protection of Economic Competition discussed the application of Armenia International Airports (AIA) CJSC. The company applied to the Commission with the request to review the difference (margin) in the aviation fuel purchase and sale prices. An administrative procedure was initiated based on the application. The company presented a certificate substantiating the change in the aviation fuel price, according to which there are three factors substantiating a change in the difference (margin) in the purchase and sale prices: the growth of expenditures, the growth of the purchase price and the decline in the purchasing power of the US dollar. The growth of expenditures is conditioned by the growth of the staff, an increase in salaries and the rates of compulsory social payments, and an increase in amortization costs at the expense of newly purchased fixed assets, municipal payments, etc. According to the company, the purchase price of aviation fuel has increased almost 2fold, which in its turn has resulted in over 2fold growth of funds for the formation of aviation fuel stores. The environmental payment to be made on the customs border has also increased in connection with the growth of the aviation fuel purchase price. In 2005-2007, inflation made over 10% in the U.S. so the previous profit of 56 USD (profit made from the sale of 1 ton of aviation fuel) currently corresponds of the profit of 62 USD. Under these conditions, in case of the current purchase price of 1,164 USD, AIA CJSC proposed establishing a difference (margin) of the purchase and sale prices at 141 USD, which will ensure a profit of 62 USD from the sale of 1 ton in case of purchasing 35 thousand tons of aviation fuel. Under the 2005 decision of the Commission, a 99 USD difference (margin) of purchase and sale prices was established for 1 ton of aviation fuel. In its application, AIA CJSC requested the Commission to establish a 141 USD difference (margin) under conditions of the purchase of 1 ton of aviation fuel for 1,164 USD. According to the Commission's press service, having come to the conclusion that a 141 USD difference (margin) in the purchase and sale prices, which was proposed by AIA company with the respective substantiation (calculation of the expenditures and profit), is acceptable under current conditions of purchasing aviation fuel for 1,164 USD, the Commission approved the company's proposal.

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