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.
Indonesia threatens to stop oil imports from Singapore
Indonesia threatens to stop oil imports from Singapore
Singapore, 9 May (Argus) — Indonesian market participants have reacted with caution to a call by the country's energy minister to stop all oil imports from Singapore. Energy and mineral resources minister Bahlil Lahadalia said on 8 May that Indonesia should stop purchases from Singapore and instead buy directly from oil producers in the Middle East, according to media reports that were confirmed by several Indonesian market participants. Discussions are taking place but there is so far no official statement from the ministry nor any direction from managers in the oil industry, one market participant said. "None of us are taking it seriously" and it is still "business as usual", the official said. The regional trading hub of Singapore is a major supplier of oil products to Indonesia, and any end to shipments from the country would upend trade flows. Singapore is the biggest gasoline supplier to Indonesia, accounting for more than 60pc of total shipments, according to customs data. Singapore exported 236,000 b/d of gasoline to Indonesia in 2024, with Malaysia a distant second at 79,500 b/d. Singapore is also one of Indonesia's top gasoil and jet fuel suppliers, shipping over 54,000 b/d of gasoil and 8,300 b/d of jet fuel to the country in January-April this year, according to data from government agency Enterprise Singapore. The government has already begun to build docks that can accommodate larger, long-haul vessels, Bahlil said, according to state-owned media. Any move by Indonesian importers to switch purchases to the Mideast Gulf would increase the replacement cost of supply because of higher freight rates, said market participants. Indonesian buyers are currently negotiating term contracts on a fob Singapore basis, so a sudden cut in supplies would not be feasible. The term contract is due for renewal soon, traders said. State-owned oil firm Pertamina, the dominant products importer, is expected to begin term negotiations for its second-half 2025 requirements in May-June. A decision by Indonesia to end imports from Singapore would cut regional gasoline demand but could be bullish for the market overall, given the extra logistics required to blend elsewhere and ship into southeast Asia. The Mideast Gulf currently supplies mainly Pakistan and Africa, with just 15pc of gasoline exports from the region heading towards Indonesia and Singapore in 2024, according to data from ship tracking firm Kpler. Indonesia's energy ministry (ESDM) did not immediately reply to a request for confirmation of Bahlil's comments. They came a day after the country's president Prabowo Subianto called for Indonesia to become self-sufficient in oil in the next five years. Indonesia has also proposed raising energy imports from the US as part of talks to reduce import tariffs threatened by president Donald Trump. Indonesia is considering boosting imports of crude, LPG, LNG and refined fuels in order to rebalance its trade surplus and ease bilateral tensions, government officials have said. By Aldric Chew and Lu Yawen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Asian airlines divert, cancel flights to avoid Pakistan
Asian airlines divert, cancel flights to avoid Pakistan
Singapore, 7 May (Argus) — Asian airlines have announced diversions or cancellation of flights to avoid the Pakistani airspace, against the backdrop of escalating tensions between India and Pakistan. Most regional airlines' flights have been avoiding the airspace above Pakistan and neighboring west India regions since 6 May, according to data from FlightRadar24. Just a handful of flights flew over Pakistan shortly after Pakistan's Airports Authority issued a safety notice to pilots, known as Notam, announcing the reopening of airspace over Lahore and Karachi on 7 May. Pakistan announced a 48-hour closure of its airspace on 6 May, suspending all domestic and international flights following India's attacks on nine targets in Pakistan . India's flag carrier Air India has cancelled all its flights to and from domestic stations including Jammu, Srinagar, Leh, Jodhpur, Amrisar, Bhuj, Jamnagar, Chandigarh and Rajkot, until at least noon of 7 May. Singapore Airlines Group's Singapore Airlines (SIA) and budget arm Scoot have also been avoiding Pakistani airspace and using alternative flight paths since 6 May, according to the group. Two major Taiwanese airlines also announced their protocols in response to the situation. Taiwan's Eva Air said on 7 May that flights to and from Europe region might be influenced because of the closure of Pakistan's airspace. Fellow Taiwanese airline China Airlines have also cancelled or diverted at least six flights between Taiwan and Europe since 6 May in response to the escalating tensions. Escalating conflicts could cause prolonged disruptions on flight schedules between the Middle East and Pakistan, as well as between Asia and Europe. This comes at a time when regional airlines are already negatively impacted by flight disruptions in the Middle East . Pakistan is a typical jet fuel importer in South Asia. The country has imported around 6,600 b/d jet fuel in the first quarter of 2025, according to Pakistan's Oil Companies Advisory Council (OCAC). Pakistan's state-owned PSO has a market share of 99pc of the country's jet fuel market. By Lu Yawen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
New Zealand's Auckland airport delays new runway plans
New Zealand's Auckland airport delays new runway plans
Sydney, 30 April (Argus) — New Zealand's Auckland airport, the country's largest, will delay plans for a second runway for at least 10 years because of operational and efficiency measures, it said on 29 April. Its plans to build a second runway by 2028 would be delayed by a decade, but operational innovation could extend that timeline further. The airport's master plan anticipates 38mn passengers/yr will transit through Auckland by 2047, up from 18.6mn in the 2024 fiscal year to 30 June, with air cargo growing by 40pc to 223,000 t/yr by 2047. The airport has yet to reach pre-Covid-19 passenger numbers and its main user, state-controlled carrier Air New Zealand, has reported ongoing problems with aircraft availability , which has slashed its available seat kilometres — a metric used to calculate capacity — in January-June. Auckland's passenger numbers for the first three months of 2025 dipped by 1pc on the year and on the quarter (see table) with domestic travel plummeting while international transits increased slightly on the quarter. Auckland's available seats to the US dropped by 18pc during March because of cancelled services, the airport said. New Zealand's jet fuel imports totalled 26,000 b/d in the January-March quarter, data from analytics firm Kpler show. Official data for October-December 2024 show 34,000 b/d of imports, up by 17pc on the quarter. The New Zealand government is exploring options for increasing fuel security, including developing biofuels, in the wake of twin reports into the nation's situation released in February. By Tom Major Auckland Airport passenger traffic (mn) Jan-Mar '25 Oct-Dec '24 Jan-Mar '24 q-o-q % ± y-o-y % ± Total 4.93 4.99 5 -1 -1 International 2.79 2.75 2.79 1 0 Domestic 1.86 2.24 2.21 -17 -16 Source - Auckland Airport Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
DG Fuels eyes larger, later Louisiana SAF plant
DG Fuels eyes larger, later Louisiana SAF plant
New York, 29 April (Argus) — US renewable fuels company DG Fuels intends to produce more sustainable aviation fuel (SAF) than it initially planned at its flagship Louisiana project, albeit on a later timeline. DG Fuels president Christopher Chaput told Argus that the company is working to reach a final investment decision on its Louisiana facility by the first quarter of next year and is on track to start delivering "meaningful" amounts of SAF from the site in 2030, later than initially expected. The company continues to look at other potential facilities across the country but is prioritizing its Louisiana plant, which will use the Fischer-Tropsch chemical process to gasify agricultural waste into low-carbon fuels. "Not exclusively, but we are focusing really, really, really hard on the first project, which is Louisiana," Chaput said. Potential sites in Nebraska and Minnesota are the next-furthest along, and the company still owns land in Maine where it could build a similar SAF plant. The facilities would use similar technology but draw from different feedstocks, such as local forest or agricultural waste, and different types of hydrogen. The plan in Louisiana is to produce blue hydrogen, which involves capturing carbon emissions and is eligible for a federal tax credit. That Louisiana facility has also expanded in size, and Chaput says it could ultimately produce 195-200mn USG/yr of fuel — up from estimates last year and an initial projection of 120mn USG/yr. Chaput says the plant's size — which would give it the highest capacity of all Fischer-Tropsch SAF plants planned globally according to Argus estimates — will be an advantage for ultimately producing a cost-competitive fuel. Other potential DG Fuels facilities would be similarly large, a different approach from some other US developers like Aether Fuels, Natural State Renewables and now-defunct Fulcrum Bioenergy that have eyed a similar production process on smaller sites. Some biofuel producers already operational today use a separate process to produce SAF, hydroprocessing vegetable oils and animal fats, and have higher production capacities. But that pathway could ultimately be limited by feedstock constraints and competition from renewable diesel, analysts say, which has spurred investors and airlines to look at other potential pathways. While plants eyeing production in the 2030s might be less exposed to immediate policy risks, biofuel producers in the US have struggled to start 2025 as margins crash from the halting rollout of a new federal tax credit and delayed blend mandates. President Donald Trump's aggressive efforts to curb renewables have scared climate tech start-ups, though Trump has also voiced general support for some other clean energy sources, including biofuels. A government loan to support US refiner Calumet's efforts to produce more SAF was briefly halted this year and then [unpaused]( https://direct.argusmedia.com/newsandanalysis/article/2656961) after a Republican US senator intervened. And policies abroad — including increasingly stringent SAF mandates in the EU and UK — could ultimately support clean fuel developers in the US even if incentives shift stateside. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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