Shortages of jet fuel are not looming over Europe despite the shock loss of supply from the Middle East and soaring prices, according to EU Sustainable Transport and Tourism Commissioner, Apostolos Tzitzikostas.
“There is currently no jet fuel shortage in Europe. We have no signs that we will have a shortage in the coming period,” Tzitzikostas told Reuters in an interview published on Friday.
Since the war in Iran broke out on February 28, European airlines have been struggling with a spike in jet fuel prices, while officials and analysts – including the IEA’s executive director Fatih Birol – have warned that Europe has just weeks before it feels kerosene shortages.
In an interview with Financial Times early last month, Tzitzikostas played down estimates that jet fuel shortages could hit Europe in June if the situation at the Strait of Hormuz does not improve, and warned against alarmist messages ahead of the peak tourism season.
Set OilPrice.com as a preferred source in Google .
The EU’s plan from April to accelerate coordination among all member states to ensure the availability of jet fuel and diesel should help the bloc go through this period of major supply disruptions, Tzitzikostas told FT.
The war in Iran has cut most of Europe’s imports of jet fuel, while local output has been falling for nearly two decades due to dozens of refineries closing permanently or being converted to biofuel production.
Airlines are cutting uneconomic routes and incur additional costs in the billions of U.S. dollars. But they are also increasingly confident the continent would avoid a jet fuel shortage this summer as refiners maximize jet fuel output and buyers diversify imports to offset supply losses from the Middle East with increased shipments from the U.S. and Nigeria.
Lufthansa and Air France-KLM expect their respective fuel bills to jump by over $2 billion each this year, but none of the airlines has warned of imminent jet fuel supply shortages.
In fact, International Airlines Group (IAG), the owner of British Airways, said last month, “based on what we know today we are confident of jet fuel supply in our main markets throughout the summer. Today the situation is more about the price of fuel than availability.”
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- Indian Companies Eye Venezuelan Oil Fields as Imports Surge 51% in a Month
- Norway Averts Offshore Strike as Workers and Industry Reach Deal
- Brazil Launches World-First Ethanol-Powered Grid Engine
