Europe Faces Jet Fuel Crisis With Only Six Weeks of Supply Left

Europe's jet fuel supply is under severe strain, with the International Energy Agency (IEA) warning that the continent has maybe six weeks of supply left. This comes as the Strait of Hormuz, a crucial route for jet fuel out of the Gulf, has been effectively closed by Iran for over six weeks in response to US and Israeli attacks.

The IEA's executive director, Fatih Birol, told AP that flight cancellations could soon occur if supplies remain blocked. The organisation's monthly oil market report stated that exports from the Gulf region are the largest source of jet fuel to the global market, and refineries in other major exporting countries, such as Korea, India, and China, are highly dependent on crude oil imports from the Middle East.

Impact on the Aviation Industry

The crisis has thrown a wrench into the inner workings of the aviation fuel markets, according to the IEA. Airlines UK, which represents the industry, said that while it is not currently seeing disruption to UK jet fuel supply, it is talking to the government about crucial measures that would be needed to support the aviation industry in the event of fuel disruption.

Airlines have had to take emergency measures to counter the rising cost of fuel, which typically makes up 20-40% of their operating costs. The benchmark European jet fuel price hit an all-time high of $1,838 (£1,387) per tonne at the start of April, compared with $831 before the war began.

Many airlines have experienced significant additional fuel costs, with EasyJet reporting £25m of extra costs in March due to the Middle East conflict. Dutch airline KLM said it will cancel 160 flights in Europe in the coming month due to rising fuel costs.

Government Response

A spokesperson for the UK government told the BBC that it is working with fuel suppliers and airlines to ensure people keep moving and businesses are supported. The European Commission said there was no evidence of fuel shortages in the European Union, but acknowledged there could be supply issues in the near future.

Industry group Airlines for Europe has called on the EU to clarify its passenger compensation rules to ensure that fuel shortages or airspace closures that result from the conflict are treated as extraordinary circumstances. This would mean that when they result in cancellations, airlines do not have to make significant compensation payments.