Regan Brown
The price of jet fuel is a highly variable figure, influenced by factors such as production costs, market demands, and the price of oil, which fluctuates daily. As of January 2022, Jet A1 fuel was priced at approximately $816 per metric ton, a significant increase from the previous year. Jet fuel prices are closely monitored by organizations like Platts and Argus Media, which provide regular updates on spot prices and market trends. These prices can vary based on region and are subject to hedging practices by airlines, where they agree on a fixed price for a set period to mitigate financial risks. The cost of jet fuel has a direct impact on the operational expenses of airlines and can influence ticket pricing and the overall profitability of the aviation industry.
| Characteristics | Values |
|---|---|
| Jet A1 price in January 2022 | $816 per metric tonne |
| Jet A1 price in January 2021 | $430 per metric tonne |
| Jet A1 price in May 2020 | $200 per metric tonne |
| Global average jet fuel price | $90.21/bbl |
| National average price for Sustainable Aviation Fuel (SAF) | $8.69 per gallon |
| FAA Alaska region jet fuel price | $8.09 |
| FAA Central region jet fuel price | $5.52 |
| Cost of fuel for a B747 Jumbo Jet from London to New York | £53,500 |
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What You'll Learn
Jet A-1 fuel cost in 2022: $816 per metric ton
The price of jet fuel, specifically Jet A1, has fluctuated over the years, closely aligned with the variable price of oil. As of January 2022, Jet A-1 fuel cost approximately $816 per metric ton, or $0.82 per kilogram. This price is notably double that of January 2021, when Jet A-1 cost around $430 per metric ton.
The cost of jet fuel does not typically include the delivery of the fuel or the fee for refueling the aircraft. The price of jet fuel can be hedged, meaning a constant price is agreed upon for a set period, regardless of market fluctuations. This strategy can help airlines reduce financial risk and fixed costs, aiding in financial planning.
The price of jet fuel varies across different regions. For instance, the national average price for Sustainable Aviation Fuel (SAF) in the United States is $8.69 per gallon, while the FAA Alaska region reports the highest jet fuel price at an average of $8.09 per gallon. Conversely, the FAA Central region reports the lowest jet fuel price, averaging $5.52 per gallon.
The cost of jet fuel can significantly impact the operational expenses of airlines and influence the overall cost of air travel. The dynamic nature of jet fuel pricing, influenced by various factors such as oil prices and market demands, makes it a critical component in the aviation industry's economic landscape.
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Fluctuating prices: $430 in 2021, $200 in May 2020
The price of jet fuel is a variable factor, influenced by various market forces and dependent on the region. As of January 2022, the price of Jet A1 was approximately $816 per metric ton, which is a significant increase from the previous year (January 2021), where the price stood at around $430 per metric ton. This fluctuation in prices can be attributed to the impact of the Covid-19 pandemic, which caused a collapse in oil prices. The lowest price point occurred in May 2020, with Jet A1 costing only $200 per metric ton—a decrease of 69% compared to the previous year.
The variation in jet fuel prices can be managed through a process called "hedging," where airlines agree on a constant price for fuel for a set period, usually a year. This strategy helps stabilize costs and facilitates financial planning, as airlines pay the agreed-upon price regardless of market fluctuations. However, it can also result in airlines paying more for fuel if prices drop during the agreed-upon period.
The price of jet fuel is closely tied to the price of oil, which can vary daily. Regional demand also plays a role in pricing, with indices like the Platts Jet Fuel Price Index and the Argus US Jet Fuel Index reflecting daily assessments of spot prices in relevant regional markets.
As of the latest update in 2025, the Argus US Jet Fuel Index reported prices for major cities like Chicago, Houston, Los Angeles, and New York. Meanwhile, the global average jet fuel price rose by 0.5% compared to the previous week, reaching $90.21 per barrel.
The cost of jet fuel also varies across different regions of the United States. For instance, the FAA Alaska region reported the highest jet fuel price at an average of $8.09, while the FAA Central region had the lowest price at an average of $5.52. These prices are averaged over 3,235 FBOs (Fixed-Base Operators) reporting aircraft fuel prices over the past 30 days and do not include additives.
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Hedging: Airlines fix prices to reduce risk
The price of jet fuel is closely aligned with the price of oil, which varies daily. As of January 2022, the price of Jet A1 was approximately $816 per metric ton, which is about double the price from January 2021. Due to the collapse in oil prices brought about by the COVID-19 pandemic, at one point in May 2020, Jet A1 was as low as $200 per metric ton.
Hedging is a common practice in the airline industry to mitigate the impact of fluctuating fuel prices. Airlines can agree on a constant price for fuel for a set period, reducing their risk and fixing their costs, which is essential for financial planning. For example, an airline might hedge 5 million tons of fuel at $600 per metric ton for 12 months. Regardless of market fluctuations, the airline will pay $600 per metric ton during that period. If fuel prices rise, the airline is protected, but if prices drop, the airline will pay more than the market rate.
Hedging allows airlines to stabilize their fuel expenses, which can account for a significant portion of their overall costs. By locking in prices, airlines can better manage their cash flow and plan their operations with more certainty. This strategy is particularly advantageous when fuel prices are low, as it enables airlines to capitalize on the low prices for an extended period.
However, hedging can also have drawbacks. If fuel prices decrease significantly during the hedged period, airlines may find themselves paying well above the market rate. This can impact their competitiveness and financial performance. Therefore, airlines must carefully consider market trends and forecasts before engaging in hedging strategies.
While hedging provides a level of protection against price volatility, it does not include additional costs such as fuel delivery and refueling fees. These expenses can further impact the overall fuel expenditure of airlines and are typically factored into their financial planning and pricing strategies.
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Regional variations: $8.09 in Alaska, $5.52 in Central US
Regional variations in the cost of jet fuel are notable, with prices in Alaska being significantly higher than in the Central US. As of 2022, the average price of jet fuel in the FAA Alaska region stood at $8.09 per gallon, while the FAA Central region reported a much lower average of $5.52 per gallon.
These disparities can be attributed to several factors, including the unique fuel market dynamics in Alaska. The state relies on a limited number of refineries and suppliers, with fuel often being shipped from Canada, the West Coast of the US, or even further afield from countries like Korea and Japan. This lengthy supply chain contributes to higher transportation costs, which are then passed on to consumers in the form of elevated fuel prices.
Additionally, Alaska's sparse population and low customer base for fuel companies result in relatively fixed costs for gas stations, regardless of their annual fuel sales volume. This dynamic further contributes to higher fuel prices, as stations with lower sales volumes must maintain similar operational costs to those selling larger volumes.
It's worth noting that Alaska has the lowest gasoline tax of any state at $0.0895 per gallon, compared to the federal tax of $0.184. However, this advantage is mitigated by the significant transportation costs, which contribute a larger proportion of the final fuel price in Alaska compared to other states.
The high cost of jet fuel in Alaska has a tangible impact on aviation in the state. Recreational pilots and businesses offering aviation services, such as sightseeing tours, must navigate fluctuating fuel prices, which can make flying a costly endeavour.
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Jet fuel suppliers: Rotterdam, Houston
The price of jet fuel varies depending on the region and the supplier. As of June 2025, the price of jet fuel in the Netherlands was 85.50 dollars per barrel. The price for jet fuel in Rotterdam, Netherlands, is given as a minimum of 1,000,000 barrels for 94 dollars per barrel, and a maximum of 3,000,000 barrels for 92 dollars per barrel. This source also mentions that the jet fuel originates from Kazakhstan.
The price of jet fuel in the US varies depending on the region. The national average price for Sustainable Aviation Fuel (SAF) is 8.69 dollars per gallon. The FAA Alaska region has the highest jet fuel price, with an average of 8.09 dollars per gallon, while the FAA Central region has the lowest price, with an average of 5.52 dollars per gallon.
One source mentions that Russia produced 1,948,000 tons of aviation kerosene in the first two months of 2020, before the pandemic broke out. In 2019, Russia produced 12,523,000 tons of this fuel. This source also mentions that jet fuel is available FOB (Free On Board) in Rotterdam and Houston, but does not specify the price.
The Jet Fuel Price Monitor provides weekly updates on the average prices paid at the refinery for aviation jet fuel. As of the latest update, the global average jet fuel price rose by 0.5% compared to the previous week, reaching 90.21 dollars per barrel.
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Frequently asked questions
As of January 2022, the price of jet fuel was approximately $816 per metric ton. This is a significant increase from May 2020, when the price was as low as $200 per metric ton due to the COVID-19 pandemic.
The price of jet fuel is closely tied to the price of oil, which can vary daily. Additionally, the price an airline pays for fuel depends on the "hedging" process, where they agree on a constant price for fuel for a set period, protecting them from price increases but also resulting in higher costs if prices drop.
The cost of jet fuel can significantly impact airline financial planning and ticket prices. For example, the fuel cost for a flight from London to New York with 450 passengers on a B747 Jumbo Jet is approximately £53,500, or £118 per person.
Jet fuel prices can vary by region, with the FAA Alaska region reporting the highest jet fuel price at an average of $8.09 per gallon, while the FAA Central region has the lowest price at $5.52 per gallon. These prices do not include additives.
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