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 surged to record highs, surpassing 100LL avgas for the first time in 15 years, with a 47 percent increase since May 2020.
This price hike and low inventory are driven by global factors including the Russia-Ukraine war and related sanctions, increased U.S. oil exports, and refiners prioritizing jet fuel and diesel production due to high demand and profit margins.
While pilots and operators face rising costs and potential regional shortages, major oil companies and refiners are reporting significant profits from the current market conditions.

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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.