Jet fuel shortage warning sparks call for ‘rationing’ plan amid fears over Europe flights | World | News
Warnings of jet fuel shortages feared to lead to flight cancellations in Europe by next month have been described as “sobering”. International Air Transport Association (IATA) director general Willie Walsh said flights in Europe could be canceled from the end of May due to disruption of supply lines due to the war in Iran.
Mr Walsh warned on Friday (April 17) that cancellations had already become a problem in Asia. He said: “The IEA’s assessment of potential jet fuel shortages is serious. We have also predicted that by the end of May we could start to see some cancellations in Europe due to jet fuel shortages. This is already happening in parts of Asia.”
“In addition to doing everything possible to secure alternative supply lines, it is important that authorities have well-communicated and well-coordinated plans in case rationing is required, including easing of slots.”
“In the past there was a group called Dire Straits. Right now it’s a difficult strait and it’s going to have huge impacts on the global economy. And the longer this goes on, the worse it’s going to be in terms of economic growth and inflation around the world,” he told the AP.
He added that “everyone will suffer” if the Strait of Hormuz is not permanently reopened.
Birol continued: “Some countries may be richer than others. Some countries may have more energy than others, but no country, no country is immune from this crisis.”
The reference price for European jet fuel rose from $831 (£614) per tonne at the start of the war to $1,838 (£1,387) at the beginning of April.
Approximately 20% of the world’s oil and liquefied natural gas (LNG) passes through the strait, which is used by the world’s largest crude oil tankers as well as the Middle East’s leading oil and LNG producers.
