UK Refineries Push Jet Fuel Output Amid Supply Shock — Jet Fuel Price Surge Impact
British refineries have been asked to maximise jet fuel production as the jet fuel price surge impact from possible Iran war supply shocks feeds into contingency planning. Michael Shanks said the government is closely monitoring UK jet fuel stocks while working with airlines, airports, fuel suppliers and other governments.
Four remaining refineries now carry more of the burden after the closures of Grangemouth and Lindsey in 2025, leaving Fawley in Hampshire, Humber in Lincolnshire, Valero’s Pembroke refinery in Wales and Essar’s Stanlow site in Cheshire. That smaller base gives British supply less room to absorb a shock if Gulf flows stay constrained.
Shanks cites stock monitoring
“UK airlines typically buy fuel months in advance, and aviation fuel suppliers hold bunkered stocks. The UK imports jet fuel supplies from a range of countries not reliant on the strait, including the United States.” Shanks also said, “The government continues to work with partners to monitor and mitigate potential disruptions.”
A fifth of the world’s oil and gas flows through the Strait of Hormuz, and normal flows from the Gulf have effectively been at a standstill since the war broke out. That is the pressure point behind the request to refineries, because the supply chain is being asked to lean harder on domestic output while imports are being routed from outside the strait.
2.3m tonnes shipped by 26 April
Just under 2.3m tonnes of jet fuel and kerosene were transported on ships in the seven days to 26 April, the lowest recorded level for global jet fuel shipments last week. The volume was less than half the average weekly amount shipped before the war, a sharp drop that explains why authorities are leaning on refinery output even while the market has not yet seized up.
UK carriers still say they are operating normally, and Airlines UK said they are not experiencing issues with jet fuel supply. But airlines have also said there are no supply problems expected over their typical four-to-six-week horizon, which leaves the gap between today’s stock position and later summer demand as the main stress point.
Jet2 hedges 87% of fuel
Jet2 said on Wednesday it remained in contact with its fuel suppliers and airports, and it said it had hedged 87% of its fuel requirement for the peak summer season at an average price of $707 a metric tonne. The company described that hedge as giving it a “high degree of cost certainty,” a useful buffer if the wider jet fuel market stays tight.
Airport Coordination Ltd can grant exemptions to the use-it-or-lose-it rule during shortages, so airlines that cancel flights because of a lack of fuel would not lose their takeoff and landing slots at busy airports if those exemptions are granted. For passengers and carriers, that means the immediate issue is not a full shutdown but a narrower one: keeping flights fueled, keeping slots, and avoiding cancellations if supply tightens further.
