As Demand and Prices for Jet-A Rise, Is Supply Dwindling?

The fundamental law of supply and demand explains why jet fuel prices have climbed to record highs recently. [Courtesy: NBAA]

Key Takeaways:

Jet fuel (Jet-A) prices have reached historic highs, for the first time exceeding 100LL avgas, impacting airports, FBOs, and pilots.
The surge is attributed to global factors like the Russia-Ukraine war, increased U.S. oil exports to allied nations, and tight supply resulting from deferred refinery maintenance during the pandemic.
Refiners are prioritizing jet fuel and diesel production due to high demand and significant profit margins, leading to substantial earnings for oil companies.

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Airports, FBOs, and pilots are increasingly feeling the pinch of rising fuel prices driven by a number of factors ranging from Russia’s war with Ukraine and related economic sanctions to the booming shipping industry and the coming summer travel season.

But jet fuel just became a special case. According to a report from GlobalAir.com, the price of jet-A hit a rare mark in April, topping that of 100LL avgas for the first time since the company began tracking it almost 15 years ago.