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.
Australia’s Sydney airport passenger numbers up in 2Q25
Australia’s Sydney airport passenger numbers up in 2Q25
Sydney, 8 August (Argus) — Sydney airport, Australia's largest airport, reported a 3pc increase on the year in passenger numbers in April-June, due to strong growth in international transits. International passengers rose by 5pc on the year, compared with a 2pc increase in domestic passengers, airport data show. International travel by Australian passengers was 5.2pc higher compared with the same period in 2024, and travel by Chinese, Indian and Philippine passport holders was also above 2024 levels. January-June domestic passenger numbers are slightly down from 2024, statistics show. This has been offset by a 4pc rise in international passenger numbers in January-June from 2024 levels. Passenger numbers were slightly below previous quarter figures , which was the Australian summer period when most tourism occurs. Australia's imports of jet fuel totalled 139,000 b/d in January-May , latest Australian Petroleum Statistics data show, 9pc higher from 128,000 b/d a year earlier. By Tom Major Sydney Airport passenger traffic (mn) Apr-Jun '25 Jan-Mar '25 Apr-Jun '24 YTD 2025 YTD 2024 q-o-q % ± y-o-y % ± YTD % ± Total 10.04 10.4 9.74 20.4 20.06 -3 3 2 International 3.94 4.32 3.77 8.27 7.93 -9 5 4 Domestic 6.09 6.08 5.97 12.12 12.13 0 2 0 — Sydney Airport Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Wizz Air to end Middle East operations from 1 September
Wizz Air to end Middle East operations from 1 September
Dubai, 14 July (Argus) — Hungarian low-cost airline Wizz Air said today it is halting all operations in the Middle East, effective 1 September. This is part of a "strategic realignment" of operations following "a comprehensive reassessment of market dynamics, operational challenges and geopolitical developments in the Middle East", the airline's subsidiary Wizz Air Abu Dhabi said via the X social media platform. Wizz Air Abu Dhabi faced operational challenges over the past year, including engine reliability constraints particularly in hot and harsh environments, which have affected aircraft availability and operational efficiency. It also noted geopolitical volatility, which has led to repeated airspace closures and operational disruptions, and wrecked consumer demand. Wizz Air also said regulatory barriers have limited its ability to access and scale in key regional markets. The airline said it intends to exit from the joint venture with state-owned Abu Dhabi Developmental Holding Company (ADQ). ADQ holds a 51pc stake in the venture, while Wizz Air holds the remaining 49pc. Wizz Air said it will turn its focus back on its core Central and Eastern Europe, as well as select western European markets such as Austria, Italy and the UK. Wizz Air Abu Dhabi began operations in early 2021 , after receiving its air operator certificate from the UAE's General Civil Aviation Authority in October 2020 . By Ieva Paldaviciute Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
European jet premiums collapse on Ice gasoil strength
European jet premiums collapse on Ice gasoil strength
London, 7 July (Argus) — European jet fuel premiums to Ice gasoil futures have nearly disappeared after a steady fall since the ceasefire between Israel and Iran at the end of June, although outright values remain elevated. Argus assessed cif northwest European jet fuel at just a $2.50/t premium to front-month Ice gasoil futures on Friday, 4 July, down from almost $60/t less than two weeks earlier. It is the lowest premium since March 2023. An analyst said the premium has "fallen off a cliff" since the end of conflict between Iran and Israel erased concerns about supply tightness . A ceasefire was called on 24 June, and has held, and jet fuel premiums have continuously fallen since then. Jet premiums are being squeezed in part by strength in Ice gasoil futures — the underlying value in Argus' European middle distillate assessments. Ice gasoil prices also cooled along with tensions in the Middle East, but remained relatively high and are rising again. Having been below $650/t for most of the April-early June period, prices peaked at almost $800/t during the conflict and have stayed above $700/t so far in July. This strength in the underlying futures is keeping outright jet fuel prices above $700/t, after they mostly averaged below that since early April. Jet fuel values typically rise in summer to reflect air travel demand, but with Ice gasoil already high and supply appearing ample to meet peak summer demand, there is little incentive further rises to either premiums or outright values. Jet premiums to Ice gasoil were between $40-60/t and outright values were above $700/t across the whole of summer 2024. Diesel overtakes jet Market participants said significant tightness in the diesel market has caused the rally in Ice gasoil futures. A unviable arbitrage in May and the first half of June muted imports from the Mideast Gulf and India, and an analyst said all arbitrage opportunities for diesel into Europe currently appear closed. Product suitable for blending marine gasoil (MGO) — which is in high demand bow the Mediterranean emissions control area (ECA) has come into force — is restricting gasoil available for diesel blending. This is leading to considerable backwardation in Ice gasoil contracts . The July contract was $44/t above the August contract on 4 July, a 32-month high. Diesel's premium to Ice gasoil futures has surpassed that of jet fuel for the first time since March 2023. Outright cif northwest European diesel prices were more than $7/bl above jet on 4 July, even though jet usually commands a premium at this time of year. This was diesel's widest premium to jet since the same period. Market participants expect jet fuel premiums to rebound but said backwardation must first narrow, which should happen as diesel market tightness eases. Higher diesel imports could come in August, as shipping fixtures indicate the very large crude carrier (VLCC) Nissos Keros may load diesel for northwest Europe in the next few weeks. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia’s Licella aims for SAF project FID in 2026
Australia’s Licella aims for SAF project FID in 2026
Sydney, 3 July (Argus) — Australian technology developer Licella is aiming for a final investment design (FID) in the second half of 2026 for its proposed 60mn litres/yr (l/yr) biorefinery at the Isis sugar mill, 265km north of Queensland's state capital Brisbane. Project Swift has engaged contractors for engineering and site investigations after winning an A$8mn ($5.3mn) federal grant last year , a process expected to take 18–24 months and including detailed initial engineering ahead of an FID. The firm plans to use its own its Cat-HTR hydrothermal liquefaction technology for turning sugarcane waste, known as bagasse, into about 40mn l/yr of sustainable aviation fuel and other products. Licella has welcomed the Queensland government's recent announcement of a parliamentary inquiry into using sugarcane products for biofuel projects , saying clear, enabling policy will be needed to bring investment and opportunity to the state at scale. Queensland's biofuel output is largely produced by Singapore-listed Wilmar's Sarina biorefinery, which can make 60mn l/yr of ethanol using about 220,000 t/yr of molasses from the region's sugar mills. About two thirds of this is used in vehicle fuel, Wilmar has said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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