Spanish refiners flag potential jet fuel shortage this summer

Spain’s main oil refiners have said that jet fuel supplies are secure through May, but have warned that shortages could emerge this summer if the Iran conflict continues.

The refiners are also working to secure enough volumes for June, according to industry sources, News.Az reports, citing foreign media.

Companies including Repsol, Moeve, and BP are increasing production in an effort to meet rising demand ahead of the peak travel season.

The warning comes as Spain prepares for what is expected to be a record tourism season, with the country aiming to surpass 100 million international visitors this year. Any disruption in jet fuel supply could affect airline capacity during the busiest months.

According to the International Energy Agency (IEA), Europe currently holds around six weeks of aviation fuel reserves.

Repsol CEO Josu Jon Imaz recently warned that the war could trigger fuel shortages in Europe, particularly affecting aviation fuel supplies.

However, he said Spain is in a relatively stronger position compared to other countries.

Spain’s Ecological Transition Minister Sara Aagesen also sought to reassure the public on Tuesday, stating that the country produces around 80% of the jet fuel it consumes, placing it in a “privileged” position within Europe.

At the EU level, Energy Commissioner Dan Jørgensen took a more cautious stance, warning Madrid on Tuesday that even if the conflict ends immediately, fuel market disruptions could continue for months.

Jørgensen said the European Commission is closely monitoring fuel stock levels and could propose mechanisms to share and redistribute supplies among member states if shortages arise.

Aagesen has indicated that Spain would be open to participating in such a system.

Across Europe, airlines are already responding to rising fuel costs and supply concerns by adjusting operations.

German airline Lufthansa announced on Tuesday that it would cut 20,000 flights between April and October to save fuel, joining carriers such as KLM and SAS in scaling back operations.

So far, Spanish airlines have not announced cancellations and instead plan to increase capacity for the summer, supported by domestic refining capacity and financial hedging strategies.

On Tuesday, Javier Gándara, head of Spain’s airline association ALA, said there is currently no supply threat but advised consumers to book flights early to avoid higher prices.

“What is clear is there is a cost increase for companies, and it is unclear which part can be covered by their margins and which by price hikes,” Gándara said.

News.Az 

By Nijat Babayev