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 percent increase since May 2020.
This unprecedented price hike is primarily due to geopolitical factors (Russia-Ukraine war), increased U.S. oil exports, and refiners prioritizing jet fuel production amid low inventories and surging demand following pandemic-era refinery shutdowns.
While pilots and FBOs are significantly impacted by these record-high costs, major oil refining companies are reporting substantial profits from the strong demand for refined products like jet fuel.

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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.