Jet fuel
Overview
Jet fuel market volatility, whether from crude prices, supply issues from refining capacity, or ongoing regulation changes, is a continual risk to your bottom line.
Having a choice in fuel pricing is the best way to mitigate risk and stay on top of market changes. Argus constructs price indexation in a way that is appropriate for each market. By doing so, market participants can align their day-to-day operations, improve management of fuel costs and directly impact their net earnings.
Jet fuel makes up more than 40% of an airline’s total operating expense. The rise in importance of sustainable aviation fuel (SAF) from government mandates and self-regulations from airlines has a direct implication on these operating costs.
Argus helps the jet fuel market participants to make informed decisions and optimize their strategies with price assessments and information on deals done for conventional jet fuel and SAF, as well as the latest market-moving news, in-depth analysis, supply and demand dynamics, and price forecasts.
Latest jet fuel news
Browse the latest market moving news on the global jet fuel industry.
Australia’s Licella aims for SAF project FID in 2026
Australia’s Licella aims for SAF project FID in 2026
Sydney, 3 July (Argus) — Australian technology developer Licella is aiming for a final investment design (FID) in the second half of 2026 for its proposed 60mn litres/yr (l/yr) biorefinery at the Isis sugar mill, 265km north of Queensland's state capital Brisbane. Project Swift has engaged contractors for engineering and site investigations after winning an A$8mn ($5.3mn) federal grant last year , a process expected to take 18–24 months and including detailed initial engineering ahead of an FID. The firm plans to use its own its Cat-HTR hydrothermal liquefaction technology for turning sugarcane waste, known as bagasse, into about 40mn l/yr of sustainable aviation fuel and other products. Licella has welcomed the Queensland government's recent announcement of a parliamentary inquiry into using sugarcane products for biofuel projects , saying clear, enabling policy will be needed to bring investment and opportunity to the state at scale. Queensland's biofuel output is largely produced by Singapore-listed Wilmar's Sarina biorefinery, which can make 60mn l/yr of ethanol using about 220,000 t/yr of molasses from the region's sugar mills. About two thirds of this is used in vehicle fuel, Wilmar has said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Phillips 66 to supply SAF to British Airways in Calif
Phillips 66 to supply SAF to British Airways in Calif
New York, 26 June (Argus) — US refiner Phillips 66 has signed a deal to supply sustainable aviation fuel (SAF) to British Airways for flights departing California, with 5mn USG already delivered in recent months. The unblended SAF has arrived since December from Phillips 66's 52,000 b/d renewable fuels refinery in Rodeo, California, and is for the airline's use at Los Angeles International Airport, the refiner told Argu s. Phillips 66 said it is delivering SAF to the airline monthly, although future volumes, pricing and other terms of the deal were not disclosed. The supply agreement follows a Phillips 66 deal announced in December to supply United Airlines with SAF at airports in California and Illinois. The Rodeo site has increased SAF production since its conversion to primarily renewable diesel early last year . It is notable that British Airways is receiving SAF in the US, which has various policies that encourage production of the lower-carbon fuel but does not require consumption as in the EU and UK. US-produced SAF is eligible for a clean fuel tax credit starting this year that offers larger subsidies to fuels as they produce fewer emissions, and blending in California can generate credits under the state's low-carbon fuel standard. Phillips 66 uses domestic and global feedstocks to produce biofuels at Rodeo, including vegetable oils, waste animal fats and used cooking oil. The company has also eyed potentially co-processing renewable feedstocks alongside petroleum at some existing US refineries, adding to co-processing capacity at its 221,000 b/d Humber refinery in the UK. Phillips 66 previously agreed to supply British Airways with SAF from that facility. Cloudy policy While US SAF production hit record highs this year, production of similar biofuels like biodiesel and renewable diesel is sharply down given uncertainty about future blend mandates and final eligibility for the new clean fuel tax credit. And the Energy Information Administration this month scaled back its outlook for US SAF output growth this year. "That's the real struggle — policy has been moving around," Phillips 66 executive vice president of marketing and commercial Brian Mandell said Wednesday at the Reuters Global Energy Transition 2025 conference in New York City. Earlier this month, President Donald Trump's administration proposed record-high US biofuel blend mandates but also floated halving program credits for fuel made from foreign feedstocks, which are widely used at major coastal biorefineries. House and Senate Republicans have also toyed with changing the new tax incentive, although they differ on the details. A Senate committee draft bill , for instance, would cut in future years the extra subsidy that SAF currently earns over road fuels. Policy is "getting clearer, but there's still a lot of elements out there that we're watching very carefully," Phillips 66 chief executive Mark Lashier said at the JP Morgan 2025 Energy, Power, Renewables, and Mining Conference in New York City this week. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
European middle distillates fall to pre-conflict levels
European middle distillates fall to pre-conflict levels
London, 25 June (Argus) — Gains in European jet fuel and diesel prices caused by the Israel-Iran conflict have entirely reversed following this week's ceasefire agreement. Front-month Ice gasoil futures — the underlying value in Argus ' European middle distillate assessments — sank to $688.25/t at close on Tuesday, 24 June, the day of the ceasefire. This was the contract's lowest settlement since 12 June, the last close before the conflict began. The contract fell by $75/t on the day on Tuesday, the largest single-day decline in 31 months. Benchmark crude basket North Sea Dated dropped by around 11pc to $68.06/bl on Tuesday, its lowest closing value since 11 June. Ice gasoil values rose to $798.50/t on 19 June, as the conflict raised fears of weaker supply from the Mideast Gulf, particularly for middle distillates. The region accounted for just under 25pc of Europe's jet fuel and diesel imports last year, according to Kpler and Vortexa. Tensions rose just as seasonal demand for jet fuel and diesel neared an annual peak in Europe, with the region relying on imports to meet demand. Market participants said the price rises were excessive, considering there had been no disruption to supply. European refining margins have also fallen, reflecting middle distillate prices' heavier falls than those for crude. Delivered cargoes of jet fuel and diesel to northwest Europe held premiums of $21.08/bl and $22.90/bl respectively to Dated, having peaked at $26.82/bl and $28.98/bl on 19 June. Cracks have averaged below $20/bl in recent months. Jet fuel margins could remain elevated in line with seasonal demand, but European diesel supply had tightened before the conflict because of weaker imports and extra demand for marine gasoil (MGO) in the Mediterranean after the start of the emissions control area. This shortness of supply has not yet fully resolved and could further support refining margins in the coming weeks. By Amaar Khan and Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Qatar closes airspace as 'precaution'
Qatar closes airspace as 'precaution'
London, 23 June (Argus) — Qatar today closed its airspace in what it called a "precautionary measure". The move came after the US embassy in Qatar ordered its citizens to "shelter in place". The UK followed this, with both embassies saying the order was "out of an abundance of caution". The Qatari government said the embassies' warnings did not "necessarily reflect the existence of specific threats". The country's foreign office said the airspace closure was undertaken "based on developments in the region". Tehran said today that US airstrikes have expanded the range of legitimate military targets for its armed forces, and Qatar hosts the US' largest military base in the Middle East. Closure of Qatari airspace will make traversing the Mideast Gulf region by air more complicated. Air traffic tracking data show a complete absence of aircraft over Lebanon, Syria, Iraq and Iran, with all flights from east to west diverting either north or south of this region. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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