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 reached record highs, surpassing 100LL avgas for the first time in nearly 15 years, significantly impacting airports and pilots.
The price surge is driven by geopolitical factors, increased demand, and post-pandemic refinery operational changes, leading to 14-year low jet fuel inventories.
Refineries are prioritizing the production of jet fuel and diesel due to high demand and profitable margins, even converting gasoline production.
Despite the increased costs for consumers, major oil companies are reporting significant profits from the high 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.