Ameer Randolph
The price of jet fuel is a highly volatile topic, with costs fluctuating due to external events such as political or economic instability, demand, and geography. Jet fuel is one of the biggest expenses for airlines, costing billions of dollars per year. The price per ton can vary from USD 30-35 per ton with large contracts to $1600 USD per ton for small uplifts in remote locations. During the COVID-19 pandemic, jet fuel prices plummeted, reaching $200 per metric ton in May 2020, but they have since risen dramatically due to the surge in demand for air travel. The cost of jet fuel has a significant impact on airfare prices and the aviation industry as a whole.
| Characteristics | Values |
|---|---|
| Jet fuel price per ton in Europe | 280-450 USD |
| Jet A-1 fuel price per ton in Europe | 262.50 USD |
| Jet fuel price per gallon in June 2020 | 1.08 USD |
| Jet fuel price per gallon in May 2020 | 1.03 USD |
| Jet fuel price per gallon in 2012 | 3.17 USD |
| Jet fuel price per gallon in 2016 | 1.45 USD |
| Jet fuel price per gallon in 2022 | 3.43 USD |
| Jet fuel price per metric ton in May 2020 | 200 USD |
| Jet fuel price per barrel in June 2022 | 180 USD |
| Jet fuel spent by carriers worldwide in 2024 | 291 billion USD |
| Jet fuel spent by carriers worldwide in 2023 | 271 billion USD |
| Jet fuel spent by carriers worldwide in 2022 | 215 billion USD |
| Jet fuel spent by carriers worldwide in 2020 | 80 billion USD |
| Jet fuel spent by carriers worldwide in 2021 | 106 billion USD |
| Jet fuel spent by carriers worldwide in 2019 | 190 billion USD |
| Jet fuel price per liter in Lagos, West Africa | 0.31 USD |
| Jet fuel price per liter in Banjul and Niamey, West Africa | 0.42-0.46 USD |
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What You'll Learn
Jet fuel prices vary by region
The price of jet fuel is not fixed and can vary significantly across different regions. This variation is influenced by various factors, including proximity to supply sources and demand in a particular region. For instance, jet fuel prices in West Africa range from $0.31 per litre in Lagos to as high as $0.42 to $0.46 per litre in cities like Banjul and Niamey. In Europe, the average fuel price ranges from $280 to $450 per ton, or $0.85 to $1.35 per US gallon.
The cost of jet fuel is also impacted by external events, such as the COVID-19 pandemic, which caused a drastic reduction in air travel and a corresponding drop in jet fuel prices. In May 2020, jet fuel was available for $200 per metric ton. However, the subsequent surge in demand following the relaxation of travel restrictions led to a significant price increase, peaking in June 2022 at over $180 per barrel.
The Middle East is known for offering some of the cheapest jet fuel globally, while regions like Alaska report higher prices, with an average jet fuel price of $8.11 per gallon as of July 31, 2025. The Central region, in contrast, reported the lowest jet fuel price in the US at that time, with an average of $5.61 per gallon.
Fluctuations in jet fuel prices can have a substantial impact on the aviation industry and airlines' financial performance, as jet fuel often accounts for one of the most significant expenses for carriers.
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Jet fuel prices fluctuate
Jet fuel prices can fluctuate for a variety of reasons, and these price changes can have a significant impact on the aviation industry. One of the key factors influencing the price of jet fuel is the cost of crude oil, which is used to produce jet fuel. When crude oil prices rise, jet fuel prices tend to follow suit, and vice versa. For example, during the COVID-19 pandemic, demand for air travel decreased significantly, leading to a drop in jet fuel prices. However, as travel restrictions were lifted and demand for air travel surged, jet fuel prices rose sharply.
Geographical location also plays a role in jet fuel price fluctuations. The price of jet fuel can vary by up to $12 per barrel between different regions, with the Middle East offering some of the lowest prices globally. Additionally, the proximity to the supply source can impact the price. For instance, jet fuel prices in West Africa can range from $0.31 to $0.46 per litre in different locations.
Market demand is another critical factor in jet fuel price fluctuations. When demand for jet fuel increases, prices tend to rise as oil companies can charge higher prices to end users. Conversely, when demand decreases, prices may lower. The reliability of individual routes for airlines is also influenced by jet fuel price fluctuations, with both low and high load factor routes showing lower reliability during periods of high fuel prices.
External events, such as political or economic instability, can also contribute to jet fuel price volatility. These events can cause sudden shifts in supply and demand dynamics, leading to price fluctuations. Additionally, jet fuel prices can be influenced by the stringent quality control measures and operating temperature requirements necessary to ensure the fuel's effectiveness. These controls increase the production costs, which are passed on to the consumer.
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Jet fuel is cheaper than gasoline
Another factor contributing to the lower cost of jet fuel is the purchasing power of airlines. Airlines consume a significant amount of fuel and often negotiate contracts directly with fuel suppliers. These bulk purchases drive down prices due to competition among suppliers to secure long-term contracts. Moreover, jet fuel can be transported through pipelines, whereas 100LL fuel, commonly used in piston engines, requires more expensive shipping methods due to its lead content.
Demand also plays a role in the pricing of jet fuel. During the COVID-19 pandemic, the reduced demand for air travel caused a decrease in jet fuel prices. Conversely, the sudden surge in travel following the lifting of restrictions led to a drastic increase in prices. Similarly, gasoline prices tend to fluctuate with demand, such as during Thanksgiving weekend in the United States when road travel increases.
The price of jet fuel is also influenced by external events and the cost of crude oil, from which jet fuel is derived. Political and economic instability, as well as conflicts like the Russia-Ukraine conflict, can impact jet fuel prices. Additionally, jet fuel prices can vary across regions, with the Middle East offering some of the cheapest jet fuel globally.
While jet fuel may be cheaper in certain contexts, it is important to note that gasoline prices can be affected by various taxes and environmental fees, which may impact the overall cost for consumers. Nonetheless, the combination of production processes, demand dynamics, and transportation efficiencies contributes to jet fuel often being cheaper than gasoline.
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Jet A1 has no tax in the UK
The price of jet fuel (Jet A-1) is closely aligned with the price of crude oil, which fluctuates daily. For example, in May 2020, jet fuel prices were down 69% compared to the previous year. The COVID-19 pandemic caused a decrease in demand for jet fuel, leading to lower prices. However, the subsequent surge in air travel resulted in prices peaking in June 2022. Jet fuel is one of the most significant expenses for airlines, often totalling billions of dollars annually.
Jet A-1 fuel is traded at different prices globally, with the Middle East offering some of the cheapest rates. In Europe, the average fuel price ranges from 280 to 450 USD per ton. Jet A-1 is sold at approximately $262.50 per ton for spot cargo in Europe, while prices at specific airports may vary. For instance, it costs around 30p per litre at Blackpool Airport in the UK.
Interestingly, jet fuel (Jet A1) is exempt from tax in the UK and most international routes, which has contributed to the aviation industry's growth and lower airfares. This exemption is often mistakenly attributed to the Chicago Convention of 1947, but it actually stems from various Air Service Agreements between states. These agreements prohibit signatories from imposing a fuel tax on international flights. However, VAT is applicable to airline tickets in the UK, and a Frequent Flyer Levy or Air Miles Levy has been proposed to address the environmental impact of flying.
While jet fuel is exempt from excise duty in the UK, specific conditions apply. Excise duty is not charged on jet fuel used by commercial airlines flying to non-UK destinations. However, this exemption relies on the proper completion of the delivery receipt note (DRN), which must include specific information and signatures.
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Jet fuel is a huge expense for airlines
Jet fuel is one of the most significant expenses for airlines, and its cost is highly volatile. The price of jet fuel is influenced by various factors, including the cost of crude oil, political and economic instability, and demand. During the COVID-19 pandemic, jet fuel prices dropped to $200 per metric ton, but they surged again as travel restrictions eased, peaking in June 2022 at over $180 per barrel. Geography also plays a role, with the Middle East offering some of the lowest prices globally.
The cost of jet fuel has a direct impact on airfare prices. When jet fuel prices rise, airlines typically pass these costs on to consumers, leading to more expensive tickets. In 2022, airfare prices saw a notable 18.6% increase in April, causing a strain on travellers' budgets. This trend is expected to continue as jet fuel costs remain high.
The price of jet fuel also varies depending on the quantity purchased and the frequency of purchases. A single Boeing 747 flight may require up to 63,000 gallons of jet fuel, costing approximately $200,000. Airlines that purchase large quantities of jet fuel regularly can secure better prices. For example, a contract for the daily uplift of 350 tons of jet fuel can result in a very special price. On the other hand, occasional uplifts in remote locations can incur extremely high costs, reaching up to $1600 per ton.
The volatility of jet fuel prices poses challenges for airlines in managing their operational and financial performance. According to Statista, carriers worldwide spent a total of $291 billion on jet fuel in 2024, a significant increase from previous years. This expense often totals billions of dollars per airline, making it a critical factor in the aviation industry's economics.
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Frequently asked questions
The price of jet fuel per ton varies depending on several factors, including location and demand. In June 2022, jet fuel prices peaked at more than $180 per barrel. In 2024, carriers worldwide spent a total of $291 billion on jet fuel, a significant increase from previous years.
The price of jet fuel is influenced by various factors, including the cost of crude oil, political and economic instability, and demand for air travel. Geography also plays a role, with price variations of up to $12 per barrel between different regions.
The amount of jet fuel used depends on the type of aircraft. A typical Boeing 747-400 passenger jet burns between 5,633 and 5,772 pounds of jet fuel on takeoff. The 747-8 passenger plane can carry up to 63,034 gallons of fuel.
Jet fuel is one of the largest expenses for airlines, often totaling billions of dollars annually. The cost per flight can vary significantly, and airlines may pass on higher fuel costs to consumers through ticket prices.
