The European Commission is working on a plan to prevent a shortage of jet fuel, the fuel for airplanes. The European Union is extremely dependent on imports of this fuel (kerosene, essentially), which come 75 percent from the Middle East: the bloc is therefore highly exposed to the crisis in the Persian Gulf, to the point that ACI – an industry organization – has warned that European airports risk running out of jet fuel if the Strait of Hormuz is not reopened within a few weeks.
Moreover, the summer season, when travel is at its peak, will soon begin.
THE EUROPEAN COMMISSION’S PLAN FOR REFINERIES AND JET FUEL
According to a draft seen by Reuters, in May the European Commission will introduce a mapping of refining capacity at the community level and will adopt measures to ensure that this capacity is “fully utilized and maintained.” However, in the European Union, refining capacity has long been in crisis: few plants manage to reach break even (the condition where revenues equal expenses), having to cope with high energy prices and the payment of CO2 emission allowances.
Additionally, the Commission is also working on some targeted measures for the supply of jet fuel, which however – according to Reuters sources – are not yet ready. They are expected to be published on April 22.
THE SITUATION AT EUROPEAN AIRPORTS
Despite sharp increases in jet fuel prices – the benchmark for northwestern Europe is above 1570 dollars per ton, compared to 750 dollars in the pre-war period – and despite the risk of flight cancellations reported by airlines, there is currently no severe fuel shortage at European airports: not severe, at least, as in some Southeast Asian countries, which have had to resort to rationing. However, in four Italian airports – Milan Linate, Bologna, Venice, and Treviso – there have been restrictions on aircraft refueling.
In recent days, the International Energy Agency has reported that several European refineries are already operating at full capacity regarding jet fuel production. Director Fatih Birol said that, for now, there is no physical shortage of kerosene for airplanes in Europe. However, he specified in an interview with Der Spiegel that “if the situation does not improve, diesel and kerosene could soon run short in Europe. Not immediately, but in the coming weeks.”
IS SPAIN THE COUNTRY BEST PROTECTED FROM THE CRISIS? AND ITALY?
The European Union country that could be best “covered” in case of a jet fuel supply crisis is Spain, which has eight refineries and is a net exporter of this type of fuel.
In contrast, Italy is dependent on imports, which cover at least 50 percent of the national jet fuel demand. Increasing the production of this fuel might not be possible, since refineries must dedicate themselves to other crude oil derivatives and process reorganization is not always technically feasible.
