Mercedes Mullins
The price of jet fuel, also known as Jet A1, is closely aligned with the price of oil, which varies daily. As of January 2022, Jet A1 cost approximately $816 per metric ton, which equates to $0.82 per kilogram. This price is about double what it was a year prior. The price of jet fuel can vary depending on the region and the airline's hedging strategy, which involves agreeing on a constant price for fuel for a set period. For example, the global average jet fuel price rose by 0.5% in one week to $90.21 per barrel.
| Characteristics | Values |
|---|---|
| Jet Fuel Price Monitor | $90.21/bbl |
| Jet A1 price in the United States | 88.3 bbl/ $ |
| Jet A1 price as of January 2022 | $816 per metric tonne |
| Jet A1 price as of January 2021 | $430 per metric tonne |
| Jet A1 price as of May 2020 | $200 per metric tonne |
| Cost of fuel for a B747 Jumbo Jet from London to New York | £53,500 |
Explore related products
$7.99
What You'll Learn
Jet A-1 fuel cost in January 2022
As of January 2022, the price of Jet A-1 was approximately $816 per metric tonne, or about $0.82 per kilogram. This price was nearly double what it had been a year before, in January 2021, when the price of Jet A-1 was approximately $430 per metric tonne, or about $0.43 per kilogram. Due to the collapse in oil prices caused by the Covid-19 pandemic, Jet A-1 fuel prices dropped even further in May 2020 to around $200 per metric tonne, or roughly $0.20 per kilogram.
The price of jet fuel is closely tied to the volatile price of oil, which can fluctuate daily. The cost of jet fuel also does not include the delivery of the fuel or the fee to refuel the aircraft.
The price that airlines pay for their fuel can vary substantially depending on what price they have "hedged" the fuel at. Hedging is when airlines agree on a constant price for fuel for a set period of time, protecting them from price increases but also sometimes causing them to pay more if prices drop. For example, an airline might pay a fixed price of $600 per metric tonne for 12 months, regardless of any fluctuations in fuel prices during that time.
In India, Aviation Turbine Fuel (ATF) prices were increased twice in January 2022, first to Rs 76.1 per litre on January 1, then to Rs 79.3 per litre on January 16. ATF prices in India continued to rise through February and March, reaching Rs 93.5 and Rs 110.7, respectively. The Indian government attributed these price increases to the conflict between Russia and Ukraine.
Cleaner Energy: Nuclear vs Fossil Fuels
You may want to see also
Explore related products
Fluctuating jet fuel prices
The price of jet fuel is subject to constant fluctuation, influenced by various factors such as demand, market dynamics, and global events. As of January 2022, the price of Jet A-1, a commonly used aviation fuel, was approximately $816 per metric ton ($0.82 per KG), a significant increase from the previous year. This price surge can be attributed to the recovery of the aviation industry from the COVID-19 pandemic, which caused a steep decline in oil prices and jet fuel demand. Indeed, during May 2020, jet fuel prices plummeted to around $200 per metric ton.
The volatility of jet fuel prices can be mitigated by airlines through a practice known as "hedging." Hedging allows airlines to agree on a constant fuel price for a set period, protecting them from price increases and providing stability for financial planning. However, it also means that if fuel prices drop, the airline will be paying more than the market rate. This strategy demonstrates the delicate balance between risk management and cost optimization in the aviation industry.
Regional differences in jet fuel prices also exist due to varying demand and supply dynamics. For instance, the United States reported jet fuel prices in Barrel, per metric ton, per gallon, and per liter. Russia, another significant producer of aviation kerosene, supplied 1,948,000 tons of aviation kerosene in the first two months of 2020 before the pandemic disrupted the industry.
The impact of the COVID-19 pandemic on jet fuel prices cannot be overstated. The collapse in oil prices due to reduced travel and aviation activities resulted in a 69% decrease in jet fuel prices in May 2020 compared to the previous 12 months. This highlights the intricate connection between the aviation industry, fuel prices, and global events.
In conclusion, jet fuel prices are inherently unpredictable and subject to numerous influencing factors. Airlines employ strategies such as hedging to manage fuel costs and reduce financial risks. However, the COVID-19 pandemic served as a stark reminder of the vulnerability of the industry to external shocks, causing drastic fluctuations in jet fuel prices worldwide.
Jet Fuel Cost: Understanding the Price of Aviation Fuel by Ton
You may want to see also
Explore related products
Hedging jet fuel prices
The price of jet fuel, known as Jet A1, is closely aligned with the volatile price of oil, which varies daily. In May 2020, the price of Jet A1 was as low as $200 per metric tonne, while in January 2022, the price had risen to approximately $816 per metric tonne.
Fuel hedging services are provided by specialist teams within fuel management companies, large oil companies, and financial services institutions. The airlines that tend to hedge a greater portion of their fuel needs include Southwest Airlines, Air France-KLM, and Hungarian budget carriers. These airlines have saved billions of dollars through fuel hedging.
However, hedging is a double-edged sword. If the market price of fuel decreases, the airline will be paying more than the market rate. Additionally, not all airlines use hedging, and some airlines that do not hedge can benefit from decreasing fuel prices.
Fuel Spending: How Much is Too Much?
You may want to see also
Explore related products
![Bose A30 Bluetooth Aviation Headset - Lightweight Comfortable Design, Adjustable ANR and Noise Cancelling Microphone, [Dual Plug] – Black](https://m.media-amazon.com/images/I/71F3iowq-qL._AC_UL320_.jpg)
Jet fuel prices by region
The price of jet fuel varies across different regions and is subject to change over time. As of January 2022, the price of Jet A1 was approximately $816 per metric tonne, which is about $0.82 per KG. This price was almost double what it was a year prior in January 2021, when it was approximately $430 per metric tonne or $0.43 per KG. The price of jet fuel is closely tied to the price of oil, which fluctuates daily. For instance, due to the collapse in oil prices caused by the COVID-19 pandemic, the price of Jet A1 dropped to around $200 per metric tonne in May 2020, which equates to about $0.20 per KG.
According to GlobalAir.com, as of July 8, 2025, the national average price for jet fuel in the United States was $6.26 per gallon. However, prices varied by region, with the FAA Alaska region reporting the highest jet fuel price at an average of $8.12, while the FAA Central region had the lowest average price at $5.53.
The Jet Fuel Price Monitor provides weekly updates on jet fuel prices and offers a global perspective. As of June 2025, the global average jet fuel price was $90.21 per bbl, reflecting a 0.5% increase compared to the previous week. This data is based on the average prices paid at refineries and is provided by leading energy information providers like Platts. Platts' assessments consider the demand for jet fuel in different regions and compare current prices to the average spot prices in 2000 to generate a percentage reflecting the overall price rise.
Fry's Fuel Points: Maximizing Rewards for Savings
You may want to see also
Explore related products
Jet fuel suppliers
The price of jet fuel fluctuates daily, closely aligning with the price of oil. As of January 2022, Jet A1 fuel was priced at approximately $816 per metric tonne, or $0.82 per kilogram. This price is about double what it was a year prior, in January 2021, when it was $430 per metric tonne, or $0.43 per kilogram. During the COVID-19 pandemic, the price of jet fuel dropped significantly, with Jet A1 costing around $200 per metric tonne in May 2020.
There are several leading jet fuel suppliers that provide fuel to thousands of airlines and business customers worldwide. Here are some details about a few of them:
World Fuel Services
World Fuel Services is a leading global provider of aviation and jet fuel, serving over 700 airlines and 9,000 business customers at more than 2,900 airports worldwide. They offer cost-competitive aviation fuel and provide access to competitive aviation fuel pricing at 3,000+ locations through their World Fuel Contract Card. Customers can benefit from centralized billing, digital transactions, and real-time tracking, supported by a dedicated team.
Puma Energy
Puma Energy is another leading jet fuel supplier, specializing in providing high-quality fuel for a wide range of aircraft, from small planes to commercial airliners. They are committed to meeting the highest industry standards for safety and performance, ensuring efficient and dependable fuel solutions for their customers. Puma Energy offers a range of jet fuels, including Jet A/A-1 fuel for gas-turbine engines used by commercial airlines and AVGAS 100LL for piston engine aircraft. Their products are available in various formats, such as drums and rail tank cars, ensuring flexibility and reliability in delivery.
Other Suppliers
In addition to the above-mentioned suppliers, there are other companies that provide jet fuel and related services. These companies often offer tailored jet fuel solutions, sustainable aviation fuel options, and tools to find information about fuel prices and availability at airports worldwide. Some focus on providing fuel for specific types of aircraft, such as turboprops, helicopters, or regional jets, while also offering sustainable aviation fuel solutions.
The Right Mix: 2-Stroke Oil to Fuel Ratio
You may want to see also
Frequently asked questions
The price varies depending on location and demand. As of January 2022, the price of Jet A1 was approximately $816 per metric ton.
Jet A1 is a widely used aviation fuel, also known as kerosene.
The price of jet fuel is closely aligned with the price of oil, which varies daily.
Hedging is when airlines agree on a constant price for fuel for a set period, reducing financial risk. For example, an airline might hedge 5 million tons at $600 per metric ton for 12 months.
The price of jet fuel is available on websites such as Platts jet fuel microsite, GlobalAir.com, and JET-A1-FUEL.com.
