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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.
Air passenger traffic up at Australia’s Sydney, Perth
Air passenger traffic up at Australia’s Sydney, Perth
Sydney, 24 July (Argus) — Australia's Perth airport logged its highest ever passenger numbers in the 2023-24 fiscal year to 30 June, breaking a record set in 2013-14, while Sydney remained behind pre-Covid-19 pandemic levels. About 16.1mn passengers used Perth airport topping the previous 14.9mn high a decade earlier. Perth's regional passenger numbers for 2023-24 edged over 6mn, outstripping interstate passengers of 5.7mn and international at 4.3mn, likely showing an increase in mining and resources activity in the state's minerals and gas provinces. Fly-in, fly-out passengers comprise a major part of Perth's total because of the remote location of many of the state's resources projects. Sydney airport, Australia's largest, reported 9.74mn passengers for April-June, led by increased international traffic and representing a 94pc recovery rate on international passengers recorded in pre-pandemic April-June 2019. Sydney's passenger numbers for this year's first half remained 7pc below 2019 but 10pc higher than the same time last year. Australia's second-largest airport Melbourne reported 35.13mn passengers for 2023-24 . Australian jet fuel sales averaged 158,000 b/d for January-May, behind the 161,000 b/d in 2019 but 8pc above 2023's average of 146,000 b/d, according to Australian Petroleum Statistics. Imports were also up by 11pc on a year earlier for the same period. By Tom Major Sydney air passenger traffic (mn) Apr-Jun '24 Jan-Mar '24 Apr-Jun '23 Jan-Jun '24 Jan-Jun '23 Jan-Jun '19 q-o-q % ± y-o-y % ± Total 9.74 10.30 9.16 20.06 18.17 21.60 -5 6 International 3.77 4.16 3.36 7.93 6.69 8.30 -9 12 Domestic 5.97 6.16 5.80 12.13 11.49 13.30 -3 3 Source Sydney Airport Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK confirms SAF mandate from 2025
UK confirms SAF mandate from 2025
London, 22 July (Argus) — The UK government officially confirmed today that subject to parliamentary approval it will introduce a 2pc sustainable aviation fuel (SAF) mandate to start from 1 January 2025. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply", the government said. Hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040. The EU is targeting a 1.2pc share of synthetic aviation fuels in 2030, rising to 2pc in 2032, 5pc in 2035 and 35pc in 2050. Buy-out mechanisms will be set at the equivalent of £4.70/l and £5.00/l for the main and PtL obligations, respectively. The government said it will work to create feedstock availability and ensure it is used in a sustainable and productive way. UK also confirmed on 17 July that it will introduce the Sustainable Aviation Fuel (Revenue Support Mechanism) bill to support SAF production. It said it estimates that SAF production will add £1.8bn ($2.3bn) to the economy and create over 10,000 jobs. The government previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026 . An EU-wide SAF mandate — ReFuelEU — comes into effect next year, replacing national obligations. Under the mandate, fuel suppliers will need to include 2pc SAF in their jet fuel deliveries in 2025, rising to 6pc in 2030, 20pc in 2035, 34pc in 2040, 42pc in 2045 and 70pc in 2050. Jet fuel demand in the EU was around 950,000 b/d last year, Energy Institute data show, meaning that SAF requirements next year could be nearly 20,000 b/d. In the longer term, EU and UK mandates could push SAF consumption in Europe to nearly 20pc of total aviation fuel consumption by 2035 and 60pc by 2050, figures from Argus Consulting show. Globally, SAF will make up nearly 4pc of total jet fuel consumption globally by 2035, and 12.5pc by 2050. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's flood-hit airport to resume flights in Oct
Brazil's flood-hit airport to resume flights in Oct
Sao Paulo, 18 July (Argus) — The Salgado Filho international airport in Porto Alegre, in flood-hit Rio Grande do Sul state, will begin receiving some flights in October, Brazil's port and airport ministry said. The airport, which is managed by Germany's Fraport, will initially receive roughly 50 flights/d, with the goal of resuming full capacity by year-end. Prior to the floods, the airport had forecast that it would have 5,404 domestic and international flights (180 flights/d) and transport over 608,000 passengers in April. But it was forced to shut in late April after the record floods that hit the state. The economy of Rio Grande do Sul state contracted by 9pc in May from the previous month, according to preliminary estimates by Brazil's central bank. The floods have left at least 182 dead and nearly 600,000 people displaced, according to the state's civil defense. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Aumentan importaciones de combustible en México
Aumentan importaciones de combustible en México
Mexico City, 16 July (Argus) — Las importaciones de combustible en México aumentaron en julio de cara a la temporada de viajes de verano e impulsadas por una disminución de la producción nacional en las refinerías de la estatal Pemex. Las importaciones marítimas a México de gasolina, diésel y turbosina, incluidas las importaciones de Pemex y privados, aumentaron un 18pc a aproximadamente 780,000 b/d del 1 al 10 de julio, frente a 663,000 b/d en el mismo periodo de 2023, según datos de Vortexa. Esto se debió principalmente a un aumento del 66pc en los cargamentos de diésel hasta alcanzar 268,000 b/d, ya que la disponibilidad de este combustible en el mercado ilegal probablemente disminuyó, según fuentes del mercado. Los cargamentos de turbosina se cuadriplicaron hasta los 43,000 b/d en el mismo periodo, ya que Pemex reabastece sus inventarios antes de la temporada de viajes aéreos de verano. Las importaciones de combustible a México habían disminuido a principios de este año, después de que la campaña del gobierno para aumentar la producción de refinerías y reducir su dependencia de las importaciones de EE. UU. comenzara a dar sus frutos, aumentando la producción de gasolina y diésel de Pemex en un 32pc y reduciendo sus importaciones hasta un 25pc en marzo. Pero en abril y mayo, el sistema de refinación de Pemex enfrentó varios problemas, desde un incendio en la refinería de Minatitlán hasta un corte de energía importante en la refinería de Tula, lo que llevó los niveles de procesamiento de crudo de Pemex a un mínimo de cinco meses en mayo. Las tasas de operación de las refinerías en junio se publicarán el 26 de julio. Es probable que el procesamiento de crudo haya caído durante el mes pasado debido a operaciones de mantenimiento en dos refinerías, dijo una fuente familiarizada con las operaciones de refinación de Pemex. El mercado tiene sus dudas sobre la posibilidad una fuerte caída en las importaciones de combustible a México, y algunos refinadores de la costa del Golfo de EE. UU. esperan una fuerte y creciente demanda. Además, incluso si la refinería Olmeca de 340,000 b/d iniciara operaciones comerciales este año, es probable que las otras seis refinerías reduzcan sus tasas de utilización, según fuentes del mercado. Recientemente, Pemex comenzó a vender diésel desde la terminal de distribución de la refinería de Olmeca, pero la cantidad es limitada y el combustible se produjo utilizando materia prima destilada en otra planta. La tendencia a la baja en las operaciones de refinado de México podría continuar en julio a pesar de los esfuerzos del gobierno saliente para aumentar la producción nacional. México ha exportado alrededor de 1 millón de b/d de crudo hasta la fecha en julio, un aumento del 20pc frente a los 847,500 b/d en todo junio, según los datos de Vortexa. Esto indica que es probable que las refinerías de Pemex estén operando a tasas más bajas. Las importaciones de combustible de México podrían continuar su tendencia al alza en los próximos meses, pues los gasolineros esperan una mayor demanda de gasolina durante las vacaciones de verano. Los inventarios de gasolina y diésel de Pemex descendieron un 24pc en junio a 6.2 millones de bl, frente a 8.1 millones de bl en junio de 2023, según una respuesta de transparencia de Pemex a una solicitud de Argus . La empresa deberá aumentar sus importaciones si las refinerías no siguen el ritmo de la demanda. Además, las importaciones suelen aumentar en la segunda mitad del año, impulsadas por la demanda de diciembre y la mezcla de gasolina de invierno de menor precio. México importó más gasolina en el segundo semestre del año en 11 de los últimos 12 años y más diésel en ocho de esos mismos años. Juego de unos pocos El mercado de importación de combustible de México se ha limitado a Pemex y a algunas empresas del sector privado durante los últimos tres años del mandato del presidente Andrés Manuel López Obrador, y no hay señales de cambio después de las elecciones presidenciales de junio. Se espera que la presidenta electa Claudia Sheinbaum, que tomará el cargo el 1 de octubre, continúe con las políticas nacionalistas de energía de López Obrador, y tendrá aún menos contrapeso que su predecesor tras la contundente victoria de su partido Morena en las elecciones legislativas. Las importaciones de combustible a México se abrieron a empresas del sector privado después de la reforma energética de 2014, pero la secretaría de energía canceló decenas de permisos de importación de combustible en los últimos años. Por Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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