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-A fuel prices have surpassed 100LL avgas for the first time in 15 years, reaching record highs and significantly impacting pilots and airports.
This unprecedented price surge is driven by critically low U.S. jet fuel and diesel inventories, increased U.S. oil exports to support allied nations, and refineries prioritizing the production of high-demand jet fuel.
Despite the high costs for consumers, major oil companies are reporting substantial profits due to the increased demand for refined petroleum products.

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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.