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.
EU says no regulatory barriers to US Jet A use
EU says no regulatory barriers to US Jet A use
Brussels, 8 May (Argus) — The European Commission today said there are no regulatory obstacles to the use in Europe of imported Jet A fuel, which is being considered as an alternative because of a shortfall in Jet A1 supplies. Europe — like most of the world — uses A1-specification jet fuel, whereas the US uses Jet A. The two specifications are almost identical, but Jet A1 importantly has a freeze point of -47°C, which is 7°C lower than Jet A. The US has become Europe's single-largest jet fuel supply region since the closure of the strait of Hormuz, through which 40pc of Europe's jet fuel imports transit. The commission said any fuel grade change requires proper management and communication, and "may require the agreement of the users connected to that system". The EU Aviation Safety Agency (EASA) today outlined "risks associated with the introduction of Jet A fuel in a Jet A-1 environment", including potential "mismatches" between fuel properties and existing operational, technical and procedural assumptions, but said it does not consider these an "unsafe condition". The commission also said airlines can be exempted from the ReFuelEU regulation's 90pc fuel uplift requirement when taking extra supplies from departure airports. Fuel supply issues at airports may also exempt airlines from landing and take-off slot obligations as a "justified non-use of slots". EU energy spokesperson Anna-Kaisa Itkonen said the guidance explains the current legal situation but does not add "anything new". "This is not us recommending airlines what [fuel type] they should be using," Itkonen said. The commission has a "full" overview of commercial jet fuel stocks, she said. "Airlines are not obliged to share this information to us," she said, noting the need to respect commercial confidentiality. In the event of last-minute cancellations, the guidance covers passengers' entitlement to reimbursement, re-routing or return, airport assistance and compensation. Airlines may be exempt from financial compensation if a cancellation was caused by an extraordinary circumstance such as local fuel shortages. "Cancellations caused by exceptionally high fuel prices, as opposed to local fuel shortages, cannot be considered as constituting 'extraordinary circumstances'," the commission said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European jet premiums lowest since before US-Iran war
European jet premiums lowest since before US-Iran war
London, 7 May (Argus) — Apparent discussions between the US and Iran on reopening the strait of Hormuz pushed European jet fuel spreads to their narrowest since before the war began, adding to existing pressure from prompt supply stability. But outright prices in Europe must remain high to continue attracting that supply. Argus assessed jet fuel cargoes delivered to northwest Europe at a $99.50/t premium to front-month Ice gasoil futures on 6 May, falling by about a third on the day. Refining margins slimmed to below $60/bl. Both are the narrowest since 27 February, the day before the US-Iran war broke out. US president Donald Trump on 6 May said a deal was under discussion with Iran to reopen the strait of Hormuz and end the US blockade of Iranian ports. Front-month Ice gasoil futures dropped by more than 8pc on the day, pushing outright jet fuel prices to $1,287/t, the lowest since the first week of the war. Jet fuel premiums have steadily fallen for more than two weeks. This reflects greater confidence about prompt supply in Europe, thanks to arrivals from the US and Nigeria, domestic refinery output and heavy reliance on inventories, all of which are helping to offset the loss of Mideast Gulf supply until demand ramps up in summer. Flat price high to pull supply But outright prices remain more than 50pc higher than pre-war levels, reflecting global undersupply of jet fuel until flows through the strait of Hormuz return. Europe must compete with other regions, such as east Africa , for the remaining supply. Airline executives and market participants have warned the cost of securing jet fuel will be significant . Airlines appear committed to maintaining supply, but not all will be able to handle such steep fuel costs. This proved fatal for the US' Spirit Airlines , which permanently closed on 2 May. Ryanair chief executive Michael O'Leary said some European airlines could meet a similar fate if prices remain high. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia announces $7.7bn fuel security package
Australia announces $7.7bn fuel security package
Sydney, 6 May (Argus) — Australia's upcoming budget will include a A$10.7bn ($7.7bn) package aimed at strengthening national fuel and fertilizer security, including the creation of a permanent, government-owned fuel reserve of about 1bn litres (6.29mn bl) and an increase in the country's minimum stockholding obligation (MSO). The package is intended to support the increase of the MSO by about 10 days, as part of wider efforts to increase the government-owned stockpile of gasoil, jet fuel and gasoline to 50 days, the federal government said today. The government will consult on implementation of the reserve, including its ability to underwrite or purchase fuel, support storage infrastructure and trade stocks during severe or prolonged supply disruptions. Of the total funding, A$7.5bn will be allocated to establish a facility to increase fuel and fertilizer supply and storage through financial support mechanisms such as loans, equity, guarantees, insurance and price support. A further A$3.2bn will be used to fund the government-owned fuel reserve, which will focus on addressing regional stockouts. The increased MSO will be supported by A$34.7mn over four years for the ongoing management of Australia's fuel security. The budget will also include A$10mn to support feasibility studies into new or expanded fuel refining capacity, to be co-funded with state and territory governments. At least one proposal already has backing from both federal and state governments to assess the potential for additional refining capacity, prime minister Anthony Albanese said today. The government said the changes will be implemented progressively and supported by investment in new and refurbished fuel storage infrastructure. Further details of the Australian Fuel Security and Resilience package will be released with the federal budget next week. Australia held 33 days of gasoil, 43 days of gasoline and 28 days of jet fuel stocks as of 28 April, energy minister Chris Bowen said on 2 May. Australian fuel importers under the MSO are required to hold 32 days' supply of gasoil, and 27 days of gasoline and jet fuel, while local refiners, Viva Energy and Ampol, are required to hold 20 days of gasoil and 24 days of gasoline and jet fuel. A 20pc reduction to the MSO is currently in place, first implemented in March to allow more supply of gasoil and gasoline in response to panic buying-induced shortages. The centre right Coalition opposition said last week it would seek to double the country's mandated fuel stocks if it returns to government after the next federal election. An A$800mn energy security package would lift the MSO to 60 days by early 2028 and expand domestic storage capacity by at least 6.29mn bl, opposition leader Angus Taylor said on 28 April, adding that the policy would increase retail fuel prices by "about a cent a litre". Western Australia and Victoria have already established their own strategic gasoil reserves, while other states are considering similar measures. State governments have also begun amending legislation in anticipation of a worsening fuel outlook, with Western Australia amending its Fuel, Energy and Power Resources Act on 5 May and South Australia proposing legislation to expand its authority to impose fuel rationing on 4 May. Australia is currently operating under level two of its National Fuel Emergency Response framework, under which national fuel supply remains functional but localised disruptions are occurring. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European jet premiums slide as prompt supply fears ease
European jet premiums slide as prompt supply fears ease
London, 1 May (Argus) — European jet fuel premiums to Ice gasoil futures have fallen to their lowest since the early days of the US-Iran war as confidence builds that near-term supply is adequate. But the outlook for the summer peak remains uncertain. Argus assessed jet fuel delivered to northwest Europe at a $200/t premium to front-month Ice gasoil futures on 30 April, the lowest since 2 March — the first session after the war began on 28 February. Jet fuel traded at $67.80/bl above the North Sea Dated crude benchmark on 29 April, marking the narrowest crack spread in more than two weeks. Market participants said values held steady on 1 May. Premiums have eased steadily over the past week as fears of supply shortfalls in Europe have receded, at least in the short term. Several airlines and producers played down the risk of shortages. Ryanair and Air France-KLM executives dismissed concerns this week, while refiners including Spain's Repsol and Austria's OMV said they are meeting supply commitments. Some market participants now view supply as secure until at least the second half of May. Improved sentiment has been underpinned by rising imports from sources outside the Mideast Gulf. Europe sharply increased jet fuel inflows from the US and Nigeria in April, with arrivals from both countries hitting monthly record highs. Although these volumes are not large enough to fully replace supply lost as a result of the US-Iran war, their rapid arrival after Mideast Gulf cargoes dried up has helped stabilise prompt availability. European refiners have also responded by maximising jet fuel output and postponing maintenance to cash in on strong margins and safeguard supply. The UK has asked its refiners to prioritise jet fuel production, while Sweden and Germany said strong domestic refining capacity is supporting the market. At the same time, Europe has relied heavily on inventories to offset the loss of Middle East supply. Stocks are replacing more than half of the missing volumes, according to Argus Consulting. But this buffer is finite. Independent jet fuel inventories in the ARA hub have fallen to six-year lows of about 550,000t, while stock cover varies widely across European countries. The IEA expects Europe to hold an average of 23 days of jet fuel stocks by June — a level it classifies as a shortage. Market participants also point to higher Chinese jet fuel exports in May , which will support global balances even if most volumes do not flow directly to Europe. Beyond early summer, however, fundamentals become less clear. Near-term supply relief comes ahead of the seasonal peak in aviation demand, which the IEA does not believe current supply levels can meet, particularly given Europe's reliance on inventories. Some participants expect demand destruction later in the year if high prices persist. The jet fuel market remains structurally tight. Global balances are still undersupplied because the strait of Hormuz remains effectively closed to normal commercial flows. Outright jet fuel prices in Europe are close to double pre-war levels, reflecting ongoing geopolitical risk and fragile supply. Most market participants do not expect the market to stabilise until Hormuz flows resume and inventories can be rebuilt. In the meantime, high prices are needed to keep arbitrage flows from the US and Nigeria viable, participants said. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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