JET FUEL CRISIS LOOMS: EUROPE COULD FACE SHORTAGES IN 3 WEEKS IF…..
GREATRIBUNETVNEWS–EUROPE is staring at a potential jet fuel shortage if the Strait of Hormuz doesn’t reopen soon.
Here are the key issues:
– Systemic Shortage Warning: “If the passage through the Strait of Hormuz does not resume in any significant and stable way within the next 3 weeks, systemic jet fuel shortage is set to become a reality for the EU,” says Olivier Jankovec, head of Airports Council International Europe.
– 30% of Europe’s Jet Fuel Affected: The region gets about a quarter of its jet fuel from Gulf producers, with 30% of Europe’s demand sourced from the Persian Gulf.
– Fuel Prices Skyrocket: Jet fuel prices have more than doubled since the conflict began, far outpacing crude oil price increases.
– Airlines Feeling the Pinch: Carriers are raising fares, adding surcharges, and scaling back services due to fuel shortages.
– Holiday Chaos Possible: Half-term breaks and summer holidays may be disrupted if fuel supplies don’t improve
The Airports Council International Europe (ACI) – which represents over 600 airports across the continent – called for the EU to take immediate measures to avoid such a scenario in a letter to the European Commission yesterday, which was obtained by CNN today.
Some of the measures it suggested include collective EU purchasing and a temporary relaxation on the regulations hindering the continent’s ability to import jet fuel.
The group also urged the European Commission to conduct its own assessment and monitoring of jet fuel production and availability.
If a supply crunch come to pass, the group warned, it would severely disrupt air travel and “significantly harm the European economy,” worsening the impact of rising oil prices.
Any fuel shortages would affect Europe’s exports, 26% of which are handled by airports, as well as citizens as peak summer travel season approaches, the group noted.
CNN has contacted the European Commission for comment.
Jet fuel prices have doubled since the US and Israel went to war with Iran and supplies are likely to remain constricted for months even if Iran opens the Strait of Hormuz quickly, Willie Walsh, the director general of the International Air Transport Association (IATA), said Wednesday.
The situation is being closely monitored, with governments and airlines exploring options to mitigate the impact.
WITH ADDITIONAL REPORT FROM ==CNN==
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