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.
War halves Kuwaiti oil products output, export in March
War halves Kuwaiti oil products output, export in March
Dubai, 22 May (Argus) — Kuwait's refinery output dropped by roughly half and exports by more than half in March, following the start of the US-Iran war on 28 February, which caused damage to Kuwait's oil infrastructure. Joint Organisations Data Initiative (Jodi) updates show that Kuwait's refinery production, excluding LPG, stood at just 627,000 b/d in March, its lowest since at least October 2022. Kuwait normally produces close to 1.1mn b/d, and in February its output reached an all-time high of 1.31mn b/d, according to Jodi data that goes back to 2002. Middle distillates and naphtha output were most affected. Jet fuel production fell by 58pc and gasoil by 45pc compared with average 2025 outputs, while naphtha dropped by 73pc. Fuel oil production was down by 17pc, while gasoline was the only oil product that increased compared with 2025, by 20pc. Kuwait's refining infrastructure was repeatedly hit by Iranian drone attacks in March and April. The 346,000 b/d Mina al Ahmadi refinery was hit on 3 April , after being hit on 19 and 20 March , and on 2 March, while 454,000 b/d Mina Abdullah was also struck on 19 March . Kuwait also operates the 615,000 b/d al-Zour refinery, but no direct hits have been reported there. The exact extent of the refinery damage has not been specified, making it difficult to assess the impact on operations. But at the end of March some units were shut at Mina al Ahmadi and Mina Abdullah was fully offline — it is now set to return online by 30 June — while al-Zour was operating at around 50pc capacity. Plant run rates could have also been lowered in response to the ongoing blockade of the strait of Hormuz, which continues to prevent refineries in the Mideast Gulf from exporting oil products. Kuwait's total oil product exports dropped by 60pc in March, compared with the average in 2025, Jodi data show. Middle distillates again suffered the biggest losses, with an around 78pc drop in jet fuel and 63pc drop in diesel exports. Naphtha exports fell by 59pc and fuel oil by 32pc, with gasoline again the only product marking an increase. The war has also severely disrupted regional and global flight schedules, with most of the countries in the Middle East closing their airspace at the start of the conflict. Kuwait was the last country in the region to announce that its airspace was reopening, on 24 April — nearly two months after shutting it, and is only starting the resumption of full operations at its international airport from 1 June . The flight disruption has sharply curtailed Kuwaiti jet fuel demand, which dropped to just 1,000 b/d in March, compared with an average 19,000 b/d in 2025. By Ieva Paldaviciute Exports 000 b/d Mar-26 2025 ±% Gasoline 17 2 963 Naphtha 67 165 -59 Jet-Kerosine 57 260 -78 Gasoil 106 289 -63 Fuel Oil 87 127 -32 Total exports 334 843 -60 Total product exports excludes LPG Jodi Refinery output 000 b/d Mar-26 2025 ±% Gasoline 78 65 20 Naphtha 53 194 -73 Jet-Kerosine 110 262 -58 Gasoil 180 327 -45 Fuel Oil 206 249 -17 Total output 627 1,096 -43 Total refinery output excludes LPG Jodi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Mexico air traffic to rise 4-6pc during World Cup
Mexico air traffic to rise 4-6pc during World Cup
Mexico City, 21 May (Argus) — Mexico's passenger air traffic could rise by 4-6pc during the 2026 Fifa World Cup, providing a boost to jet fuel demand despite Mexico hosting only a fraction of tournament matches, financial group Monex said. The uptick would be below the 8-15pc increases recorded by host countries during the 2018 and 2022 World Cups because Mexico is not the tournament's primary host, according to Monex. Mexico will host 13 of the tournament's 104 matches from 11 June-5 July, while the competition will conclude on 19 July in the US. Airport operators are expected to be among the sectors that benefit most from the event. Monex forecasts passenger traffic growth of 3.9pc for operator Asur, 2.3pc for GAP and 7.3pc for OMA in 2026, with the World Cup serving as a key catalyst. Asur's largest airport is Cancun, while GAP and OMA's flagship airports are Guadalajara and Monterrey, respectively. Both cities are among the three Mexican host cities for the tournament. The increase in passenger traffic is likely to support jet fuel consumption , which has already been growing this year. Low-cost airlines Viva and Volaris have been expanding seat availability as more aircraft return to service , creating additional upside for traffic at Mexico City's international airport. Monex expects the tourism boost associated with the World Cup to extend into 2027, forecasting average passenger traffic growth of 4-5pc across Mexico's main airport groups. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US refiners boost jet fuel to near record levels
US refiners boost jet fuel to near record levels
Houston, 21 May (Argus) — US refiners are pumping out jet fuel at a near-record pace as global demand surges because of Iran-war related supply disruptions. US jet fuel output has reached above 2mn b/d in recent weeks , as refiners have added capacity and maximized yields, according to Energy Information Administration (EIA) estimates. The output is nearing the record weekly high of about 2.1mn bl set in July 2024. Jet fuel production has increased by nearly 290,000 b/d since the start of the US-Israel war on Iran on 28 February, the EIA data show. The conflict has choked off oil and products supply through the strait of Hormuz and damaged energy infrastructure, causing soaring fuel prices. US refiners expect high margins to continue at least through the end of 2026. Independent refiner Marathon Petroleum increased jet fuel capacity by 30,000 b/d at its 606,000 b/d Garyville refinery in Louisiana in March and plans to boost jet fuel capacity at its 253,000 b/d Robinson refinery in Illinois by 10,000 b/d in the third quarter. US refiner Valero has also maximized jet production in its system, increasing yields to more than 30pc of total distillates in March, up from an average of 26pc, chief operating officer Gary Simmons said on a first quarter earnings call. Valero plans to push two more refineries into "jet production mode" to increase yields even further, he said. Refiner HF Sinclair put into service a project that allows it to swing about 7,000 b/d between diesel and jet fuel at its 145,000 b/d Puget Sound refinery in Anacortes, Washington. The project is helping to supply the US west coast and Latin America, HF Sinclair said. The jet fuel production boost is not limited to the US. Canadian integrated energy company Suncor in December started producing jet fuel at its 137,000 b/d Montreal refinery in Quebec, with the potential to grow it up to 16,000 b/d. The original plan was to sell it domestically into airports in Montreal and Ottawa, but then the company saw the "unique market blowout" in the first quarter which continued into the second quarter "where jet fuel became short in certain markets", executive vice president of downstream Dave Oldreive said in a first quarter earnings call. Suncor earlier this month sold jet fuel into Rotterdam in the Netherlands, he said. Europe has sought replacement supplies following the strait of Hormuz disruptions. Jet fuel prices in the US climbed to record highs in March and early April following the start of the war. At the US Gulf coast, jet fuel prices reached an all-time high of $4.73/USG on 2 April, the highest price since Argus launched its assessment in 1994. Overall US jet fuel prices are expected to average $3.33/USG in 2026, the EIA said in its latest monthly Short-Term Energy Outlook (STEO) on 12 May. That forecast is up by 74pc from the EIA's estimate before the war. Airlines pay the price Jet fuel costs for all US airlines in March averaged $3.13/USG, up by 30pc from the same month in 2025, according to Bureau of Transportation Statistics data released on 6 May. Some airlines are limiting capacity because of the higher prices. United Airlines plans to reduce its flight capacity by five percentage points in 2026 as its first quarter jet fuel costs averaged $2.78/USG, up by nearly 10pc from the first quarter of 2025. Delta Air Lines expects its jet fuel costs to roughly double in the second quarter and will keep capacity flat year-over-year "until the fuel environment improves," chief executive Ed Bastian said on a first quarter earnings call last month. Another large US carrier, American Airlines, expects its jet fuel costs to increase by $4bn in 2026 compared to previous plans. One beleaguered US airline said it could not survive the rising prices. US low-cost carrier Spirit Airlines permanently shuttered its operations on 2 May, citing higher jet fuel costs, after filing for bankruptcy protection twice since 2024. By Eunice Bridges and Hunter Fite Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Norway to debate increasing diesel, jet stocks
Norway to debate increasing diesel, jet stocks
London, 20 May (Argus) — Norway's parliament, the Storting, will tomorrow discuss a proposal to increase the country's diesel and jet fuel stocks to cover 90 days of consumption, up from the current 20 days. The parliament's energy and environment committee on 12 May requested the government "urgently establish a better system for emergency storage of diesel and aviation gasoline in Norway, which ensures security of supply in all parts of the country for 90 days". It also asked the government to "consider measures to secure the production of diesel in Norway", with an autumn deadline for government proposals. The topic was sparked by a report from the Norwegian Defence Research Institute in March, which flagged that the country is dependent on imported diesel and jet fuel, and has one refinery — the 203,000 b/d Mongstad facility, run by state-controlled Equinor. The report recommended strategic fuel stocks as a priority measure. The committee's recommendation noted Norway has "good capacity for the production of regular gasoline", but it pointed out logistics concerns, and the potential requirement for more fuel in the country's north "where nationally the greatest military activity can be expected". Norway, as Europe's biggest oil exporter, has no stockholding obligation under its IEA membership — the only country outside North America without one. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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