EU Avoids Jet Fuel Shortage After Strait of Hormuz Closure — Reuters
The European Union has managed to avoid an aviation fuel shortage, despite analysts’ fears following the closure of the Strait of Hormuz and the reduction in global supplies of oil and petroleum products.
This was stated by European Commissioner for Transport Apostolos Tsitsikostas.
According to him, there are currently no signs of a jet fuel shortage in EU countries, and no shortage is expected in the near future. At the same time, regional airports remain the most vulnerable to potential disruptions.
The official cited the rapid rise in fuel costs as the main problem for the aviation industry. According to estimates by the International Air Transport Association (IATA), jet fuel costs account for 25% to 30% of all airline operating expenses.
Due to rising fuel prices, some carriers have already begun to cut back on or completely cancel routes that have become economically unviable.
At the same time, passengers may not immediately feel the impact of rising prices, as many airlines use hedging mechanisms that allow them to temporarily curb fuel costs.
Tsitsikostas warned that the situation could become significantly more complicated if energy supplies from the Middle East remain blocked for an extended period.
He emphasized the importance of restoring shipping through the Strait of Hormuz as soon as possible and ending hostilities in the region. According to the European Commissioner, EU countries have strategic fuel reserves for emergencies, and the European Commission is ready to coordinate their use if necessary.
Currently, there is no need to redistribute reserves among EU member states.
Source: Reuters.
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