The European Union is actively considering various strategies, including importing jet fuel from the United States and implementing new minimum reserve quotas, as it navigates a potential supply crunch exacerbated by the ongoing conflict involving Iran.
Despite growing concerns about jet fuel supplies within the EU, Transport Commissioner Apostolos Tzitzikostas asserted on Tuesday that there is currently no evidence of “actual shortages” and that widespread flight cancellations are not anticipated over the summer months.
The Commissioner’s efforts to alleviate public anxiety come amidst the continued blockade of the Strait of Hormuz. This vital waterway, typically responsible for one-fifth of the world’s oil and liquefied natural gas supplies, has triggered global concerns regarding energy security.
Last week, Fatih Birol, head of the International Energy Agency, issued a stark warning, stating that Europe might have “maybe six weeks or so [of] jet fuel left.” He cautioned that if oil supplies remain halted due to the conflict, flight cancellations could occur “soon.”
Tzitzikostas acknowledged that stocks were “under pressure” in certain parts of Europe. However, he emphasized that the EU is closely monitoring the situation, the market is responding to the pressure, and there were no signs of bottlenecks. He attributed some carrier cancellations to high fuel costs rather than a lack of supply.
Airlines will receive guidance on passenger rights and public service obligations should jet fuel shortages materialize, he added.
The EU imports a significant portion of its jet fuel requirements, typically 30 to 40 percent, with approximately half originating from the Middle East.
“Europe maintains emergency stocks,” Tzitzikostas reiterated. “These stocks can be and will be released only if necessary. At this stage, however, the market is managing the pressure, and there is no evidence of actual shortages.”
Suspended Flights and Future Measures
The European Commission is set to unveil a comprehensive package of energy and transport measures on Wednesday. Tzitzikostas announced the establishment of a new “fuel observatory” to meticulously monitor supplies, commencing with jet fuel.
The EU is also actively exploring alternative sources for jet fuel, including potential imports from the United States.
The looming prospect of jet fuel shortages has understandably rattled the aviation industry, particularly as the Northern Hemisphere’s busy summer travel season approaches. Some airlines have already taken steps such as suspending flights or imposing fuel surcharges.
“We must also be ready for any future shocks,” Tzitzikostas stated, “so we will assess whether we need a minimum stock obligation for jet fuel, requiring member states to maintain a minimum emergency reserve.”
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