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.
Australian fuel stocks exceed levels before US-Iran war
Australian fuel stocks exceed levels before US-Iran war
Sydney, 20 April (Argus) — Australia's fuel stocks are higher than at the outbreak of the US Iran war, energy minister Chris Bowen said on 18 April. Australia held fuel stocks equivalent to 31 days of gasoil consumption, 30 days of jet fuel and 46 days of gasoline under its minimum stockpile obligation (MSO) on 14 April, data released on the same day show. Volumes include those in country storage and cargoes located within Australia's exclusive economic zone. Australia's fuel requirements are contracted until the end of May, Bowen added. Fuel suppliers are required to report stocks every Tuesday and prove compliance with the MSO under federal law by Friday. MSO data were published quarterly prior to the US Iran war but shifted to weekly disclosures in early March . Australia had average holdings equivalent to 32 days of gasoil consumption, 29 days of jet fuel and 38 days of gasoline, according to the most recent quarterly MSO figures, covering September–December 2025. The Australian government will allow domestic sales of 50ppm sulphur gasoline until the end of September, extending earlier temporary relaxations introduced in March. The initial waiver permitted refiner Ampol to sell gasoline above the national 10ppm sulphur limit for 60 days and allowed imports of 50ppm material. From September, suppliers will be permitted to blend higher sulphur gasoline into the broader fuel pool at lower rates until 31 December, Bowen said. Suppliers subject to the MSO can paper trade S-21 tickets with other importers to ensure compliance. An S-21 ticket is a ticket for one litre of gasoil, jet fuel or gasoline. Gasoil remains the tightest market for MSO compliance and the requirement became more stringent after the mandated gasoil stock levels increased from 1 July 2025 to 32 days of cover for importers and 20 days for refiners Viva Energy and Ampol. Viva is typically long on S-21 tickets thanks to its lower days of consumption requirements owing to its 120,000 b/d Geelong refinery. Lower distillates output at Geelong could mean it has less tickets to offer other importers who could be short of their MSO requirements. Importers had their MSO requirements for gasoil and gasoline lowered by 20pc in an attempt to boost supply after a surge in demand from panic buying led to service stations running dry in regional areas. Meanwhile, the fire at Viva's Geelong refinery on 15 April was confined to the alkylation unit, while processing units including the crude distillation and reformer units remain unaffected. The residue catalytic cracking unit (RCCU) is temporarily off line as part of stabilisation efforts. The RCCU unit was restarted in mid-October 2025 following a major maintenance. Viva expects production of diesel, jet fuel and gasoline to return to above 90pc of capacity in coming weeks, subject to plant inspections. The Geelong refinery does not typically process Middle Eastern crude, sourcing supplies mainly from North and South America, southeast Asia and Australia. Viva said it has secured crude supply through July, with high confidence of continued availability. Around one-third of Viva's transport fuel sales are supplied by the Geelong refinery, with the remainder largely met by imports from the Asia Pacific region through its partnership with Vitol. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU downplays IEA warning on jet fuel shortage risk
EU downplays IEA warning on jet fuel shortage risk
Brussels, 17 April (Argus) — The European Commission has sought to downplay warnings about a looming jet fuel shortage in Europe, but has not ruled out taking action if supply from the Mideast Gulf remains disrupted. EU officials are "obviously" aware that jet fuel markets are tight, but "there is no indication of systemic fuel shortages that would lead to widespread flight cancellations", European Commission energy spokesperson Anna-Kaisa Itkonen said today. EU refineries cover around 70pc of the bloc's jet fuel demand, with the remainder met by imports, according to the commission. Itkonen was responding to a warning from the IEA that jet fuel stocks in Europe may fall low enough to cause physical shortages at some airports by June unless the region can secure more than 50pc of its lost Middle East volumes. IEA executive director Fatih Birol reiterated that message on 16 April, telling the Associated Press that Europe has "maybe six weeks or so of jet fuel left" if the strait of Hormuz is not reopened. Despite the EU's more sanguine tone, Itkonen said the commission is still preparing for "possible" supply shortages, and will launch "co-ordinated" action if necessary such as releasing oil stocks. A draft plan leaked earlier this week suggests the commission is due to outline measures to address rising energy prices and energy security on 22 April, focusing on jet fuel and diesel availability, refinery capacity and gas storage filling. There may be some near-term relief. Since Itkonen's comments, Iran's foreign minister has announced that the strait of Hormuz will be open to commercial vessels for the duration of the US-Iran ceasefire . By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US–Iran war draws arbitrage to plug Asia fuel gap
US–Iran war draws arbitrage to plug Asia fuel gap
Singapore, 17 April (Argus) — The US–Iran conflict has disrupted an estimated 4.5mn b/d of oil product exports from the Mideast Gulf, prompting Asia-Pacific buyers to pull cargoes from alternative supply regions to help plug mounting supply gaps. Middle distillate markets are seeing elevated inflows, with record arbitrage arrivals of around 231,000 b/d of jet fuel and gasoil expected in April, mainly from Russia, according to Kpler. For comparison, Asia-Pacific imported just 7,000 b/d from west of Suez in 2025 and 15,000 b/d in 2024. The Asia-Pacific region is typically longer and trade flows typically flow from East to West instead of the other way, but the US-Iran war has invited large volumes of "reverse arbitrage" inflows. The naphtha market has also attracted close to 3mn t of arbitrage cargoes to offset the 3-4 mn t/month from the strait of Hormuz, with close to 3mn t loaded from west of Suez in March set to arrive in April-May. But these inflows remain insufficient, as Asia typically consumes 6–7mn t/month of naphtha, most of which is sourced from the Mideast Gulf. The resulting imbalance has triggered widespread cracker run rate cuts and multiple force majeure declarations across the region. Other light distillate markets have also shown similar trends. In the gasoline market, buyers in the Asia-Pacific have drawn a record near 119,000 b/d of gasoline from west of Suez for May arrivals, according to shipping data from Kpler. This is sharply higher than 8,000 b/d in 2025 and 17,000 b/d in 2024. The influx of arbitrage cargoes have helped to stem some of the losses in supplies, although the latest easing in oil product crack spreads across the board was likely more driven more by an easing in bullish sentiment as peace and ceasefire talks have kicked off. Over the week, gasoline, gasoil and jet fuel crack spreads fell by 21pc, 12.9pc and 2.8pc to $23.74/bl, $54.56/bl and $73.51/bl, respectively. Naphtha crack spreads declined 32.15pc to $212.03/t. Price tug-of-war Looking ahead, the onset of Europe's summer driving and travel season could force Asia-Pacific buyers to widen east-west arbitrage spreads to attract sufficient cargoes. East-west spreads must rise sufficiently to offset high freight costs and incentivise flows east rather than keeping barrels in western markets. But those spreads have recently narrowed. The gasoline east-west spread fell to $2.95/bl on 15 April from $12.15/bl on 1 April. The prompt naphtha east-west spread retreated to $67.50/t from $100.75/t over the same period, while the gasoil east-west spread turned negative, dropping to –$76.16/t from $130.91/t. A narrow or negative spread significantly reduces the economic incentive for arbitrage flows into Asia. If the strait of Hormuz remains shut, refiners in the region must try to procure alternative crudes to increase runs to produce much needed domestic supplies or put a cap on demand if the east-west spread remains narrow, according to market participants. Not sustainable Arbitrage inflows are providing some relief now, but they are not a sustainable solution if the strait of Hormuz remains shut, given that there are insufficient cargoes globally to meet demand, analysts trading firms said. Prices will need to "roll up" until demand is curtailed or regional refiners raise run rates by processing alternative crude. Even then, running crudes that refineries are not designed to run will put a cap on Asia-Pacific refined product output, weighing on residual fuel production and potentially reducing secondary unit efficiency. By Aldric Chew, Asill Bardh and Cara Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
ARA jet fuel stocks at six-year low: Insights Global
ARA jet fuel stocks at six-year low: Insights Global
London, 16 April (Argus) — Jet fuel stocks in independently held storage at the Amsterdam-Rotterdam-Antwerp (ARA) hub fell to their lowest level in more than six years in the week to 15 April, while naphtha inventories dropped to a one-year low, consultancy Insights Global said. Jet fuel stocks fell for a second consecutive week, down by 7.6pc to around 600,000t — the lowest level since April 2020. Independently held inventories had already been declining from late January, before jet fuel flows from the Mideast Gulf were disrupted by the US-Iran war. US jet fuel flows have since been diverted towards the UK, as the country seeks to build stocks ahead of peak summer airline demand. The UK also imported jet fuel from the ARA hub during the week, further tightening regional availability. Independently held gasoline stocks rose by 2.5pc on the week to 1.04mn t. Seasonally weak inland demand and lower pull from west Africa allowed refinery output in ARA to accumulate in storage, Insights Global said. The consultancy also noted weaker blending interest, potentially reflecting an oversupplied European gasoline market, in line with market feedback. Naphtha stocks fell sharply, down by 13.9pc to about 430,000t, their lowest level in a year. Cargoes that would typically supply Europe from Algeria and the US were instead diverted to Asia-Pacific, where buyers were willing to pay higher prices, Insights Global said. By Leon Wheeler Independent ARA stocks on 15 April 2026 000t Stocks ± week-on-week ±% week-on-week Gasoil 1,950 -142 -6.8 Fuel oil 702 37 5.6 Gasoline 1,039 25 2.5 Naphtha 429 -69 -13.9 Jet 597 -49 -7.6 Total 4,717 -198 -4.0 — Insights Global Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Turbulence Ahead: The Jet Fuel Supply Crisis
ARA biofuels decouple from fossil complex as jet, gasoil prices surge
Epic Fury fires global jet prices to new heights
Explore our jet fuel products
Key price assessments
Argus prices are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
