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 a national average of $6.92 per gallon, a 47% increase since May 2020.
This surge is driven by factors including Russia's war with Ukraine, historically low U.S. jet fuel and diesel inventories, increased U.S. oil exports, and refiners prioritizing high-demand jet fuel production.
While pilots and operators face higher costs, major oil refining companies are reporting significant profits due to the increased demand and premiums 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.