Sylvie Willis
The price of aviation fuel, also known as Jet A1, varies daily and by region. As of January 2022, the price of Jet A1 was approximately $816 per metric tonne, which is about double what it was a year prior. The price of jet fuel is influenced by the price of oil and other factors such as demand and market holidays. Hedging, or agreeing to a constant price for fuel for a set period, can help airlines reduce financial risks and costs. The cost of aviation fuel also depends on the type of aircraft and the distance travelled. For example, a Boeing 747-400 flying from London to New York burns approximately 70,000 kilograms of fuel, resulting in a fuel cost of approximately £53,500.
| Characteristics | Values |
|---|---|
| Price of Jet A1 in January 2022 | $816 per metric tonne |
| Jet A1 price per kilogram in January 2022 | $0.82 |
| Jet A1 price per kilogram in January 2022 in GBP | £0.61 |
| Jet A1 price in January 2021 | $430 per metric tonne |
| Jet A1 price in May 2020 | $200 per metric tonne |
| Jet A1 price in May 2020 per kilogram | $0.20 |
| Price of aviation fuel for a Jumbo Jet from London to New York | £53,500 |
| Price of aviation fuel for a Jumbo Jet from London to New York in EUR | €64,300 |
| Price of aviation fuel for a Jumbo Jet from London to New York in USD | $158 per person |
| Price of aviation fuel for an A380 | £205,000 |
| Lowest 100LL price | $5.94 |
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What You'll Learn
Jet A1 fuel price in Jan 2022: $816 per metric tonne
The price of Jet A1 fuel, which is the type of fuel used in jet aircraft, was approximately $816 per metric tonne as of January 2022. This equates to about $0.82 or £0.61 per kilogram, as a metric tonne is equal to 1,000 kilograms or 2,204 pounds. This price represents a significant increase from just a year prior in January 2021, when the price of Jet A1 fuel was approximately $430 per metric tonne or about $0.43 per kilogram.
The price of jet fuel is closely tied to the price of oil, which can vary on a daily basis. For instance, due to the collapse in oil prices brought about by the COVID-19 pandemic, the price of Jet A1 fuel dropped to around $200 per metric tonne in May 2020, which is equivalent to roughly $0.20 per kilogram. This price level reflected a 69% decrease compared to the previous 12-month period.
The fluctuation in jet fuel prices can have a significant impact on the operations of airlines. To manage this volatility, airlines may engage in a practice called "hedging," where they agree on a constant price for fuel for a set period. This allows them to reduce risks and fixed costs, which is crucial for financial planning. For example, an airline might hedge a fixed amount of fuel, such as 5 million tonnes, at $600 per metric tonne for 12 months. Regardless of market fluctuations, the airline will pay the agreed-upon price during the specified period. However, if the fuel price drops, the airline will end up paying more for fuel than the market rate.
It is worth noting that the Jet A1 fuel price of $816 per metric tonne in January 2022 does not include the cost of delivering the fuel or the fee for refuelling the aircraft. These additional charges can further impact the overall cost of aviation fuel for airlines and other aviation entities.
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No tax on aviation fuel in the UK or Europe
The price of aviation fuel is a highly relevant topic, with jet fuel prices currently being averaged over thousands of Fixed-Base Operators (FBOs) worldwide. However, the question of taxation on aviation fuel is equally important, with potential economic and environmental implications.
Historically, aviation fuel in the EU was tax-free, with no VAT applied. This was banned in 2003 by the Energy Taxation Directive, except in cases of bilateral agreements between member states. Despite this, no such agreements exist as of 2018, and aviation fuel remains untaxed in the EU. This is in contrast to the taxation of avgas and jet fuel in most US states.
The UK, which has left the EU, is also exempt from taxing aviation fuel due to the ASA negotiated between the UK and Europe. This allows the UK to avoid taxing fuel used on routes to EEA destinations. However, there is a growing movement to introduce taxes on aviation fuel in both the UK and Europe. Many believe that aviation fuel should be taxed to address the industry's negative externalities, such as impacts on climate and public health through air pollution and aircraft noise.
Proposals for aviation fuel taxation in the EU and UK have been met with mixed responses. Some argue that aviation fuel should be taxed to reduce emissions and put all member states on equal footing. For instance, in 2019, finance ministers from nine European countries called on the European Commission to introduce EU-wide taxes on aviation. On the other hand, attempts to introduce aviation taxes in Switzerland were rejected by voters in 2021, and the aviation industry and travel agencies vehemently opposed a similar tax in the Netherlands in 2008, leading to its abolition a year later.
Despite the lack of taxation on aviation fuel in the UK and Europe, there are other mechanisms in place to address the industry's carbon emissions. For example, the aviation industry's inclusion in the UK Emissions Trading Scheme (ETS) and the International Civil Aviation Organisation's (ICAO) offsetting system, CORSIA. However, these schemes have been criticised for not effectively holding the aviation industry accountable for its carbon emissions.
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Hedging: airlines agree on a constant fuel price for a set period
The price of jet fuel, or Jet A1, is closely tied to the ever-fluctuating price of oil. As of January 2022, Jet A1 was priced at around $816 per metric tonne, or $0.82 per KG. This was roughly double the price from the year before, where Jet A1 was approximately $430 per metric tonne, or $0.43 per KG.
Due to the collapse in oil prices caused by the Covid-19 pandemic, Jet A1 prices plummeted to just $200 per metric tonne in May 2020, or $0.20 per KG. These prices, of course, do not include the cost of delivering the fuel or the fee to refuel the aircraft.
Airlines employ various strategies to manage fuel costs, one of which is hedging. Hedging allows airlines to agree on a constant fuel price for a set period, protecting them from price hikes but also exposing them to the risk of overpaying if prices drop. For instance, an airline might hedge 5 million tonnes of fuel at $600 per metric tonne for 12 months. Regardless of market fluctuations, the airline will pay $600 per metric tonne throughout that period. However, as witnessed during the COVID-19 crisis, airlines may be forced to pay for hedged fuel even if they cease operations and don't use the fuel, potentially resulting in financial losses.
The practice of hedging helps airlines reduce risks and fixed costs, which is crucial for financial planning. It provides a level of certainty in an unpredictable market, allowing airlines to better manage their expenses and protect themselves from sudden spikes in fuel prices. On the other hand, hedging can also work against airlines if fuel prices drop significantly, as they will still be locked into the higher, pre-agreed price.
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Platts Jet Fuel Price Index: daily assessments of jet fuel spot prices
The price of jet fuel is a crucial factor in the aviation industry, with fluctuations impacting airlines' operational costs and, ultimately, consumers' travel expenses. To provide transparency and help stakeholders make informed decisions, S&P Global Platts publishes the Platts Jet Fuel Price Index, offering daily insights into jet fuel spot prices.
The Platts Jet Fuel Price Index is a comprehensive assessment of jet fuel prices in the physical spot market across relevant regional centres. It captures the dynamics of this critical aviation fuel segment, helping industry participants, analysts, and regulators stay abreast of the latest price movements. The index calculation considers various factors to ensure accuracy and representativeness.
Firstly, Platts conducts daily evaluations of jet fuel spot prices in key regional markets. These assessments are meticulously weighted based on demand or uplift data and trading volume, reflecting the significance of each region in the global jet fuel market. This approach ensures that the index is sensitive to price changes in high-demand areas, providing a nuanced understanding of the market.
When a market is not assessed on a particular day due to holidays or other factors, the index maintains consistency by referring to the previous working day's assessment. This continuity ensures that the index captures the overall trend, even when specific markets experience temporary disruptions. Additionally, the Platts Jet Fuel Price Index provides a broader context by comparing current prices to historical data. By comparing current values with the average spot prices in 2000, weighted similarly by demand or uplift data, the index generates a percentage figure illustrating the overall price evolution.
For instance, if the index value reaches 200, it indicates that prices have doubled since the year 2000. This long-term perspective is valuable for identifying price trends and understanding the impact of market dynamics and external factors on jet fuel costs. The Platts Jet Fuel Price Index is a trusted source of information for those involved in the aviation industry, helping to make sense of the complex and ever-changing jet fuel market.
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Jet fuel price varies by region
Jet fuel prices vary significantly by region, with various factors influencing the cost. As of August 6, 2025, the national average price per gallon of jet fuel in the United States was $6.29. However, prices differed across different FAA regions within the US. For instance, the FAA Central region reported the lowest jet fuel price at an average of $5.61 per gallon, while the FAA Alaska region had the highest jet fuel price at an average of $8.09 per gallon.
These price discrepancies can be attributed to several factors, including varying demand, transportation costs, taxes, and local market conditions. Regional demand plays a crucial role in determining jet fuel prices. Regions with higher aviation activity and demand for jet fuel tend to have higher prices due to increased competition for resources. Conversely, regions with lower demand may offer more competitive pricing.
Transportation costs also contribute to regional price variations. The process of refining crude oil into jet fuel and then transporting it to different regions incurs additional expenses, which are passed on to the consumer. Regions that are geographically closer to refineries or have more efficient transportation infrastructure may benefit from slightly lower prices.
Tax policies and local regulations can also cause price differences between regions. Certain states or countries may impose specific taxes or duties on jet fuel, which can significantly impact the final price. Additionally, local market conditions, such as the presence of competing suppliers or fluctuations in supply and demand, can cause jet fuel prices to vary from one region to another.
It's worth noting that jet fuel prices are constantly fluctuating, and fuel price monitoring organizations, such as Platts Jet Fuel Price Index and GlobalAir.com, provide regular updates on these changes. Platts Jet Fuel Price Index offers daily assessments of jet fuel spot prices in relevant regional centers, taking into account market holidays and using previous working days' data when needed. GlobalAir.com, on the other hand, provides average fuel prices for different regions within the US, based on data received from government sources like NOAA, NWS, FAA, and NACO.
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Frequently asked questions
The price of jet fuel changes daily and varies depending on the region. As of January 2022, Jet A1 was approximately $816 per metric tonne, or $0.82 per KG.
The price of jet fuel is closely aligned with the price of oil, which fluctuates daily.
A Boeing 747-400 Jumbo Jet flying from London to New York burns approximately 70,000 kilograms of fuel, which costs around £53,500. This equates to £118 per person, based on 450 passengers.
An A380 can hold approximately 315,000 litres of fuel, which costs approximately £205,000.
Currently, there is no tax on aviation fuel in the UK or Europe.
