Qantas to increase fuel surcharges again

: Oil products
11/04/19

Sydney, 19 April (Argus) — Australian carrier Qantas Airways said it will increase fuel surcharges on international flights sold in Australia and raise domestic fares in response to higher oil and jet fuel prices. The latest rise, which will be imposed on tickets bought from 28 April onwards, is the fifth fare increase since 3 February of which three have been through higher fuel surcharges.

Qantas is raising surcharges by A$100 ($104.50) on some long-haul flights from Australia, taking surcharges to A$290 for a one-way flight to the UK and Europe and A$250 to the US and Canada. Fuel surcharges on flights from Australia to South America, South Africa and India will increase to A$200 from A$150, while surcharges for all other flights in the Asia-Pacific region will rise by A$40 to A$145.

The airline is raising domestic fares by around 5pc, taking a typical one-way fare between Australia's two largest cities Sydney and Melbourne to A$117 from A$112, and between Sydney and Perth to A$257 from A$245.

Qantas said the price of Singapore jet fuel has increased to over $136/bl today from an average of $120/bl in February and $88/bl in September 2008. Further increases in oil and jet fuel prices are a continuing concern for the aviation industry, Qantas chief executive officer Alan Joyce said.

“The revised fuel surcharges cover less than half of the increase in fuel cost for the Qantas international business for next year. With fuel prices at record highs, even if the fuel price begins to decrease it will be some time before we will be able to decrease the fuel surcharge,” Joyce said.

Joyce said Qantas will spend $2bn on fuel in the second half of the financial year ending 30 June, an increase of about A$300mn on its fuel bill in the first half of the financial year.

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26/04/24

EU to consider E20 gasoline blend

London, 24 April (Argus) — European Commission president Ursula von der Leyen said the commission will consider authorising a higher 20pc ethanol blend in gasoline (E20) in the revision of the policy framework for fuels, in a letter to three MEPs this week. Von der Leyen wrote in response to a letter from the three German MEPs — Norbert Lins, Peter Liese and Jens Gieseke — sent in June last year, in which they proposed the accelerated standardisation and market launch of E20 fuel. They said that this higher blend could "make a significant contribution to achieving our climate goals without placing an undue burden on citizens." In her response von der Leyen said that the "the commission confirms the role that higher biofuel blends can play in the decarbonisation of existing fleets". But she also said that the commission would take into account "possible problems related to the suitability of engines of existing vehicles for this fuel, as well as the need to incentivise investment in advanced biofuels". Currently the maximum ethanol blend permitted in the EU is 10pc (E10). Authorising E20 would double the amount of ethanol that could be blended into gasoline, but no timeframe on such a decision was provided. The EU-27 imported more than 1mn t of undenatured ethanol in 2025 , according to Eurostat data. EU energy commissioner Dan Jorgensen said last month that increasing the uptake of biofuels could substitute fossil fuels and alleviate pressure on markets, when discussing the "potentially prolonged disruption" of oil products supplies caused by the US-Israel war on Iran and resulting closure of the strait of Hormuz. This point was not mentioned by von der Leyen in her letter. The US will allow refiners and retailers to supply E15 gasoline — a higher than usual blend — in some states from May, and will waive other fuel rules as part of attempts to temper pump prices that have surged because of the war. Argentina has done the same , while some Asia-Pacific countries are considering increasing blending levels. In Europe, indirect effects of the war caused ethanol prices to rise . Average 75pc greenhouse gas emissions-saving crop-based ethanol hit its highest since September 2022 on 13 April. Romania has decided to remove the requirement to blend 8pc biofuels into gasoline because it pushes prices for the fuel up. Prior to the Iran war, the European ethanol market was already structurally short coming into the year. And member states' mandated targets continue to increase under the EU's latest Renewable Energy Directive (RED III). But provisional application of the EU-Mercosur interim Trade Agreement is set to begin on 1 May , a deal that will allow reduced import tariffs on a total of 200,000 t/yr to be phased in incrementally across six years. Rising bio-mandates for road fuels are likely to add further pressure to the already waning demand for European gasoline. Europe's primary export outlets — the US Atlantic coast and west Africa — have reduced their reliance on European gasoline, becoming increasingly self-sufficient. Since Europe is structurally long on gasoline — producing more than it consumes — falling export demand has led to higher stock levels compared with historic averages in recent years. Participants have pointed to plentiful stocks across Europe this year, with some traders suggesting waning demand may lead to an oversupplied European market. Refiners have begun slowing gasoline blending activity to curtail production, in part due to the backwardation caused by the US-Iran war, which tightened prompt global energy supplies, but also because of limited outlets. By Toby Shay and Atishya Nayak Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Short-term diesel supply at ARA good, tightness ahead

26/04/24

Short-term diesel supply at ARA good, tightness ahead

London, 24 April (Argus) — Diesel is well-supplied at Amsterdam-Rotterdam-Antwerp (ARA) hub, buoyed by strong refinery output, draws on stocks and unusual barge imports from Germany, but expectations of a tight summer are building. Refineries at ARA have run hard in recent weeks, aiming to capture strong middle distillate margins, according to market participants. Diesel refining margins have fallen from a record high of $79.22/bl on 20 March but remain elevated, settling on Thursday, 23 April, at $53.93/bl, 80pc higher than before the US-Israel-Iran war began. Suppliers have started to lean into inventories, reluctant to pay high prices. Independently-held stocks of diesel and other gasoil at the hub have fallen by 11pc in the past two weeks to an eight-month low, according to Insights Global. Wider stocks have also been drawn down, market participants said. Unusually, German traders have also shipped diesel along the Rhine river to ARA in recent weeks, in a rare reversal of the usual flow. Low German prices make that trade workable, with domestic demand very weak and oversupply in the country's southwest and west. German consumers have relied on inventories more, driving consumer heating oil tank levels to a more-than-six year lows and diesel tanks to a 21-week low. Reverse Rhine flows have started to wind down now, regional market participants said. Those three boosts to supply have brought down barge prices at ARA. Argus assessed diesel barges loading on a fob ARA basis at a $9/t premium to the front-month Ice May gasoil futures on Thursday, down from a premium of $78/t a week earlier. Barge traders have been active, market participants said. A trader said TotalEnergies has supplied large amounts from its 338,000 b/d Antwerp refinery into the barge market, and Insights Global said physical delivery of the April gasoil futures might have driven activity. But demand for cargoes has weakened, driven by uncertainty and high prices. Buyers are taking a "waiting" mindset, in a hope that prices will fall instead, most traders said. Volatility since the start of the war has limited physical liquidity, muting traders' appetite for risk, a trader said. The front-month Ice gasoil futures have moved by more than 10pc on four days this month. This volatility has caused paper and physical traders to reach internal risk management limits on their positions , further reducing liquidity. Traders described a "binary market" that is difficult to trade, with a lot depending on signals about a resumption of movement through the strait of Hormuz. The final cargo of Mideast Gulf diesel arrived in Europe last week. Europe now has to do without the 20pc of its overall imports that came from the Mideast Gulf, and traders increasingly expect a tight summer. Replacing this means facing competition for other regions. Arrivals of diesel and other gasoil into the EU and UK have fallen by 38pc on the month to around 695,000 b/d in April to date, which would be the comfortably be the lowest since on Vortexa and Kpler records began in 2016. Europe can continue to pull on stocks, helped by emergency releases in Europe that favour products over crude. , but this cannot be done indefinitely. Government intervention in diesel markets may place further strain on supply and raise prices through staving off demand destruction . European governments have tried to curb price rises, with fuel duty cuts the most common measure. By Josh Michalowski Diesel barge fob ARA, premium to front-month Ice gasoil futures $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Shipping needs pragmatic decarbonisation approach: IMO

26/04/24

Shipping needs pragmatic decarbonisation approach: IMO

Singapore, 24 April (Argus) — The maritime sector's push towards net-zero emissions suffered a "small setback" at the International Maritime Organisation (IMO) Marine Environment Protection Committee (MEPC) meeting last October, but the industry needs a "pragmatic" approach given the current geopolitical climate, IMO secretary general Arsenio Dominguez said at the Singapore Maritime Week (SMW) conference this week. The focus on decarbonisation "is not diminished", said Dominguez, adding that research and investment into decarbonising the sector is still ongoing. Freedom of navigation and the safety of crew remains top of mind for the maritime industry, and the IMO has proposed an evacuation framework for affected vessels in the Mideast Gulf. The sector is keeping close watch on the 84th Marine Environment Protection Committee (MEPC) that will be held in London next week, and key shipping groups have expressed support for the IMO's greenhouse gas (GHG) reduction ambitions ahead of the session. The US-Iran war foregrounds the energy trilemma between energy security, affordability, and sustainability, said SMW panellists, noting the maritime sector needs to balance all three components for a resilient transition to greener fuels, particularly as the shipping sector is "pulled in many directions" given short-term supply shocks and regional regulations. Recent supply shocks have shown countries need to diversify their economy and source for alternative fuel options, said Dominguez. But panellists emphasised that cost barriers have slowed the shift to greener fuels, since affordability requires scale and investment. One of the things that would drive the scale-up and investment in greener fuels is the certainty of regulations, said Stefan Nysjo, head of power supply at Finnish engine manufacturer Wartsila Marine Power. Supportive policies are "important when you're entering a market where there is no market", said ExxonMobil Asia Pacific chairman and managing director Geraldine Chin. A carbon accounting system underpinned by transparency is the way forward, said Chin, stressing that carbon intensity systems must be implemented on a total life cycle basis, and gradually such that it doesn't shock the market. Decarbonisation solutions "must be economic" and the market must depend on new technologies that would support the uptake of alternative fuels like ammonia, hydrogen, and methanol, she said. But several panellists noted that businesses are not waiting for regulations to be fixed before deciding what to do in terms of decarbonisation. We have to look at "what are the options today… and not in 20 years", said Mediterranean Shipping Company (MSC) head of maritime policy and government affairs Marie-Caroline Laurent. MSC had chosen the LNG pathway with the hope of progressing to bio-methane and e-methane in the future, although they are not closed to other fuel options. "The choice was a very practical one," said Laurent. Maersk has committed to low-carbon fuel options, with methanol being one of them, said its management and technology Leonardo Sonzio. The Danish container liner has net-zero greenhouse gas emissions target by 2040, with intermediate targets by 2030. Smaller shipping firms may not have the luxury of choosing several fuel pathways, said shipping firm CMB.Tech's chief executive Alexander Saverys. Decarbonisation can only pick up when the cost of alternative fuels becomes "cheap compared to diesel", said Saverys, adding that CMB.Tech had chosen the ammonia pathway given its usage in other industrial sectors. Economist Martin Stopford said a lot of the "low hanging fruits" have been picked in the past 50 years, driven by demand for energy from crude, and the "move to a new era" of cleaner fuels would require higher costs, deeper knowledge and further efforts in development. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Western Australia to add 8mn litres to gasoil reserve

26/04/24

Western Australia to add 8mn litres to gasoil reserve

Sydney, 24 April (Argus) — The government of Western Australia (WA) will buy an additional 8mn litres (50,314 bl) of gasoil for its strategic fuel reserve, it said on 23 April, increasing the state-owned stockpile to 12mn litres (75,471 bl). The additional 8mn litres was offered by miner Rio Tinto and will be purchased from its supplier Viva Energy. The volumes are incremental to WA's normal fuel imports and will be stored in Esperance and Kwinana. The extra supply will allow it to redirect fuel to priority users, including the agricultural sector in the Wheatbelt and Great Southern regions, if required, the government said. WA announced plans to create its own strategic reserve of gasoil , separate from the national stockpile, earlier this month. An initial 4mn litres of gasoil for the strategic reserve was bought from independent supplier Cambridge Gulf and is stored at Wyndham in the Kimberley region, where it is expected to support power generation in remote communities. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

P66 moves US oil on foreign ship after Jones Act waiver

26/04/23

P66 moves US oil on foreign ship after Jones Act waiver

Houston, 23 April (Argus) — Independent refiner Phillips 66 has shipped oil from the US Gulf coast to the US east coast on a foreign-flagged ship, taking advantage of a waiver of the Jones Act. A Malta-flagged Panamex vessel loaded about 300,000 bl of Bakken crude on 3-5 April at Phillips 66's Nederland terminal in Texas and delivered it to Monroe Energy's 190,000 b/d Trainer refinery in Pennsylvania on 17-18 April, according to ship-tracking data from Kpler. Monroe Energy is owned by Delta Air Lines. The tanker is currently empty and scheduled for another US-to-US shipment starting 28 April, according to Kpler. A Phillips 66 spokesman declined to comment on the shipment saying that the company does not discuss commercial activities. The shipment took advantage of a 60-day Jones Act waiver issued on 17 March. President Donald Trump approved the waiver of domestic shipping requirements under in an attempt to ease a spike in commodity prices caused by the war in Iran. The temporary waiver allows shippers to transport crude, natural gas, natural gas liquids, fertilizer, coal and other energy-related products from one US port to another without using US-built, US-crewed and US-flagged ships, as the 1920 Jones Act requires. By Eunice Bridges and Amanda Hilow Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Qantas to increase fuel surcharges again

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