UK refineries asked to maximise jet fuel production amid supply fears | Airline industry
British refineries have been asked to maximize jet fuel supplies as part of the government’s contingency plan, as fears grow that the Iran war will force planes to be grounded.
Energy minister Michael Shanks said the government was closely monitoring UK jet fuel stocks and working with airlines, airports, fuel suppliers and other governments as carriers faced rising fuel costs due to the conflict.
The normal flow of fossil fuels from the Gulf has come to a virtual halt since the outbreak of war, following the virtual closure of the Strait of Hormuz, a key shipping channel through which a fifth of the world’s oil and gas flows.
“UK airlines often purchase fuel months in advance and aviation fuel suppliers maintain fuel stocks. The UK imports supplies of jet fuel from a variety of non-strait-dependent countries, including the US,” Shanks wrote in a ministerial statement.
“Airlines UK stated that ‘UK airlines continue to operate normally and have no problems with jet fuel supplies.’ The government continues to work with partners to monitor and mitigate potential disruptions,” added Shanks.
Following the closure of the Grangemouth and Lindsey refineries in 2025, there are now only four refineries left in the UK.
The remaining refineries in the UK are: Fawley in Hampshire, owned by ExxonMobil; The Humber in Lincolnshire is owned by Phillips 66; Valero’s Pembroke refinery in Wales; and Essar’s Stanlow facility in Essex.
A number of refined products such as gasoline, diesel, jet fuel and fuel oil are produced in these facilities to meet domestic demand and for export. The number of refineries in the UK has fallen from its peak of 18 in the 1970s, as has UK production of petrol and diesel.
This comes as global jet fuel shipments fell to the lowest level on record last week. Just under 2.3 million tonnes of jet fuel and kerosene were carried on ships in the seven days to April 26, according to an initial analysis by data company Kpler, which first began tracking shipments in 2017. This figure represents less than half the average weekly volume shipped before the war.
Airlines insisted they no longer expected any supply issues over their typical four-to-six-week horizon, even though some carriers had already announced flight cancellations and lobbied for government aid amid rising fuel prices and a possible supply crisis.
Airlines that cancel flights due to lack of fuel will not lose their rights to valuable takeoff and landing slots at busy airports; These rights may be lost if flights cannot be operated for a certain period of time.
On Friday it was announced that exemptions to the “use it or lose it” rule during shortages could be granted by Airport Coordination Ltd, the independent body that manages slots at UK airports, in a bid to minimize disruption and prevent airlines flying to protect slots.
Budget travel carrier Jet2 said in a statement on Wednesday that it remained in contact with fuel suppliers and airports.
The group said it had secured 87 per cent of its fuel needs for the peak summer season at an average price of $707 per metric tonne, giving it a “high degree of cost assurance”.
Jet2 said “current geopolitical uncertainty” over the conflict in the Middle East meant holidaymakers were booking trips closer to departure, making it difficult to predict bookings for the busy summer season and beyond.
Heathrow Airport also told investors it faces an “uncertain outlook” as a result of the conflict, although a short-term increase in the number of passengers traveling through the airport to change planes has been reported due to the closure of airspace in the Middle East.
Approximately 19 million passengers traveled through the airport in the first three months of the year; This figure increased by 3.7% compared to the previous year.
Heathrow said it was “temporarily absorbing demand from elsewhere” but did not expect this to continue for the rest of the year given the “significant uncertainty” in the region.
