The UK has been getting at least half of its jet fuel from the Middle East in recent months after stopping Russian supplies following Vladimir Putin’s invasion of Ukraine and due to lower domestic refining, as reported by Financial Times. The UK government says people should not worry about supply problems and should book summer holidays as usual. However, industry experts warn shortages could happen if the Iran war continues.
Airlines may face fuel shortages soon
Analysts say airlines may start feeling the impact by the end of April if supply issues continue. “Fuel shortages are not far away in some countries” and higher prices will spread through the supply chain, said Janiv Shah of Rystad Energy. A senior jet fuel manager called the disruption “quite a mess.” Benchmark north-west European jet fuel prices reached $1,744 per tonne — about double pre-war levels, according to Argus Media.
Middle East fuel cargoes drop
Recently there were usually about eight Middle East cargoes heading to the UK at any time, but now there is only one — the lowest since 2021, said Vortexa. Europe gets around 40% of its jet fuel through the Strait of Hormuz, which is now nearly shut, as stated by Financial Times. The UK receives jet fuel directly from the Middle East and also indirectly via the Netherlands and Belgium.
Europe looks for other fuel sources
Lars van Wageningen from Insights Global said Belgium and the Netherlands may face similar shortages soon. Traders may still reduce shortages by bidding higher and redirecting fuel cargoes meant for other countries. European buyers are also expected to seek extra fuel from West Africa and the US, van Wageningen said.
Fuel being rerouted worldwide
A jet fuel cargo from Nigeria arrived at Milford Haven in the UK on Monday. “The system doesn’t stop — it reshuffles,” said Matt Stanley from Kpler, adding it’s more about rerouting and price changes than full shortages, as noted by Financial Times. Vortexa said competition for cargoes from Saudi Arabia’s Red Sea Yanbu port — which avoids the Strait — is rising every day. Buyers who can pay more are now trying to source fuel from different regions, analysts said.
UK government holds crisis meeting
Argus Media reported increased jet fuel exports from the US to Europe, especially the UK, in recent weeks. Before the Ukraine war, Russian imports made up about 5% of UK jet fuel demand. AirportsUK said some airport hubs store jet fuel, but airlines usually deal directly with suppliers. The Department for Energy Security and Net Zero said shipments are still arriving and the UK imports fuel from India, the US, the Netherlands and other countries. UK Prime Minister Keir Starmer held a meeting at Downing Street with leaders from energy, shipping, finance and insurance sectors to discuss the crisis, as cited by Financial Times. “This is going to have to be a joint effort,” Starmer told the group during the discussion.
FAQs
Q1. Why is the UK worried about jet fuel supply?
The UK may face shortages because shipments from the Middle East are slowing due to disruption near the Strait of Hormuz affecting fuel routes.
Q2. Will flights become more expensive in the UK?
Yes, experts say prices may rise as fuel costs increase and supply becomes tighter, according to Financial Times.
