The UK government has asked British refineries to maximise jet fuel production as part of contingency planning amid growing concerns that the Iran conflict could lead to grounded planes. Energy minister Michael Shanks said the government is closely monitoring UK jet fuel stocks and working with airlines, airports, fuel suppliers and other governments as carriers face soaring fuel costs.
Normal flows of fossil fuels from the Gulf have effectively halted since the war began, following the de facto closure of the Strait of Hormuz, through which a fifth of the world's oil and gas passes. Shanks noted that UK airlines typically buy fuel months in advance and suppliers hold bunkered stocks, while the UK imports jet fuel from countries not reliant on the strait, including the United States.
Global jet fuel shipments fell to the lowest recorded level last week, with just under 2.3 million tonnes transported in the seven days to 26 April, according to data firm Kpler. This is less than half the average weekly volume shipped before the war. Airlines have insisted there are no immediate supply problems within their typical four-to-six-week horizon, but some carriers have announced flight cancellations and are lobbying for government help.
The UK now has only four remaining refineries: Fawley in Hampshire, Humber in Lincolnshire, Pembroke in Wales, and Stanlow in Cheshire. These sites produce petrol, diesel, jet fuel and fuel oil. The number of UK refineries has fallen from a peak of 18 in the 1970s.
To minimise disruption, the government announced that airlines cancelling flights due to fuel shortages will not lose their takeoff and landing slots at busy airports. Exemptions to the 'use-it-or-lose-it' rule can be granted by Airport Coordination Ltd. Budget carrier Jet2 said it has hedged 87% of its fuel requirement for the summer at an average price of $707 per metric tonne, while Heathrow airport reported an 'uncertain outlook' despite a short-term passenger boost from airspace closures in the Middle East.
