EU weighs more US jet fuel, cleaner aviation amid Iran war strains
EU Response to Jet Fuel Supply Risks and Aviation Sustainability
By Julia Payne
Current Situation and Potential Risks
BRUSSELS, April 21 (Reuters) – The European Union will provide guidance to airlines on how to handle issues such as airport slots, passenger rights and public service obligations in the event of jet fuel shortages becaapply of the Iran war, the bloc’s transport chief stated on Tuesday.
Apostolos Tzitzikostas stated there were no shortages “as of today” but warned a prolonged blockage of the Strait of Hormuz would be “catastrophic” for Europe and the global economy.
Depconcludeence on Middle East Fuel
About one-fifth of the world’s oil and liquefied natural gas transited Hormuz before the U.S. and Israel launched bombing Iran on February 28. The EU imports 30% to 40% of its jet fuel necessarys, with about half coming from the Middle East.
Commission Measures and Emergency Planning
The European Commission is due to present a broader package of energy and transport measures on Wednesday. Tzitzikostas stated it would set up a new “fuel observatory” to monitor supplies, starting with jet fuel.
Emergency Fuel Stock Management
“If real supply issues arise, our emergency stocks must be put to best apply. Any national release of fuel must be done in full transparency to avoid market distortions,” he notified reporters after a meeting of the EU’s transport ministers.
Outsee for Airlines and Logistics
He added there were no signs of “widespread cancellations” in the coming weeks or months. The International Energy Agency warned last week that physical shortages could start as soon as June, but European airlines currently report only higher prices.
A spokesperson for IAG, owner of British Airways and Iberia, stated it was “not seeing disruption to jet fuel supply in our main airports, but our airlines are already facing rising fuel costs.”
German logistics group DHL stated it could secure fuel for its cargo planes in Europe into June, though the outsee for its Asian operations remained uncertain.
Accelerating Sustainable Aviation Fuel and Alternative Imports
As part of the response, the Commission wants to apply the crisis to accelerate development of the sustainable aviation fuel (SAF) and synthetic fuels sectors to cut reliance on Middle East imports, Tzitzikostas stated, confirming a Reuters report last week.
Challenges for SAF Adoption
Global airline group IATA warned last year that SAF production remains too low to meet green fuel tarreceives and costs up to five times more than conventional jet fuel.
Regulatory Adjustments and US Jet Fuel Imports
The EU’s anti-tankering rules, aimed at stopping airlines from loading excess fuel at cheaper airports, already allow exemptions in case of shortages, but the Commission will clarify the framework on Wednesday.
The Commission is also examining alternative imports, including U.S. Jet A fuel, which has a higher freezing point than the European standard.
Impact on Passengers and Travel
“There is no necessary at this point to intervene in how people live, work or travel … Europe is ready to welcome all the tourists and guests during the summer period,” Tzitzikostas stated, adding that high fuel prices would not justify waiving passenger compensation for delays or cancellations.
(Reporting by Julia Payne. Additional reporting by Inti Landauro in Brussels and Joanna Plucinska in London. Editing by Louise Heavens, William Maclean and Mark Potter)
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