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Jet Fuel Price Trend Analysis 2026: Market Insights, Latest News, Historical Prices, Price Drivers & Supply Demand Analysis
Written ByPragati Agarwal
Jet Fuel Latest Development
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Strait of Hormuz closure continues to constrain global oil supply, with observed output remaining significantly below year-ago levels. IEA revised its demand forecast downward as inventories fell to multi-decade lows, reinforcing upward price pressure and market volatility.
Jet Fuel Price Trend Q2 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Jet Fuel | USA | FOB | USD 1,132.06/MT | June 2026 |
| Jet Fuel | China | FOB | USD 861.44/MT | June 2026 |
| Jet Fuel | Netherlands | FOB | USD 945.00/MT | June 2026 |
| Jet Fuel | South Korea | FOB | USD 883.88/MT | June 2026 |
| Jet Fuel | Australia | FOB | USD 950.34/MT | June 2026 |
| Jet Fuel | USA | FOB | USD 1,119.81/MT | May 2026 |
| Jet Fuel | China | FOB | USD 1,116.75/MT | May 2026 |
| Jet Fuel | Netherlands | FOB | USD 1,126.50/MT | May 2026 |
| Jet Fuel | South Korea | FOB | USD 1,110.21/MT | May 2026 |
| Jet Fuel | Australia | FOB | USD 1,151.39/MT | May 2026 |
Stay updated with the latest jet fuel prices, historical data, and tailored regional analysis
- Jet fuel prices fell sharply after the early Q2 supply shock eased, as alternative cargo flows improved and high fuel costs weakened airline demand.
- Feedstock pressure came from crude and refinery losses, with lower refinery throughput and inventory drawdowns keeping product markets tight through the quarter.
- Downstream aviation demand softened as airlines raised fares, reduced capacity, and adjusted weaker routes after the fuel-cost spike.
Asia
In China, the prices of Jet Fuel were ~RMB 9.62/kg and ~RMB 7.56/kg, respectively, in the first two months of Q2’26, showing a ~21.4% decrease during the period. Similarly, in South Korea, the prices of Jet Fuel were ~KRW 2,040.54/kg in April and ~KRW 1,671.93/kg in May. Asian jet fuel first moved up sharply as Middle East disruption cut crude and product flows, tightened regional export availability, and raised airline fuel surcharges. However, prices corrected in May as flight schedules were reduced, demand growth expectations were lowered, and buyers resisted higher spot levels. Slower seat-capacity growth and route cancellations weakened fuel consumption, allowing the market to give back part of the earlier risk premium.
Europe
During Q2'26, the prices of Jet Fuel were ~EUR 1.28/kg in April and ~EUR 0.97/kg in the following month, showing a ~24.5% decrease in the Netherlands. Europe was highly exposed to the supply shock because part of its jet fuel supply normally came from the Persian Gulf, while regional production capacity had already declined compared with pre-crisis levels. Prices eased later as alternative supply routes improved, but the market remained sensitive to import dependence and route disruption. Aviation activity also faced pressure from high fuel costs, which limited demand recovery despite the summer travel season.
North America
North America was better supplied than Europe because refinery operations remained strong late in Q2. U.S. refinery inputs stood at 17.1 million b/d, with utilization at 96.1% in the week ending June 19. Jet fuel supplied was also slightly higher year-on-year, showing that aviation demand did not collapse. However, the U.S. West Coast remained exposed to East Asian import competition, especially when Asian buyers were chasing limited cargoes. This kept regional risk uneven.
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- Jet fuel prices moved sharply upward globally in Q1 2026 due to severe supply disruptions linked to the Iran war and restricted flows through the Strait of Hormuz, tightening availability across regions.
- Supply pressure intensified as refinery output and fuel shipments from the Middle East declined, while higher logistics and insurance costs increased production and delivery costs, leading to price increases.
- Downstream demand remained sensitive, with airlines passing higher fuel costs into ticket prices, triggering fare hikes, flight cancellations, and route adjustments, which influenced price trends.
Asia
In Asia, the jet fuel price graph displayed upwards movements as a result of decreased flows of supply and heavy reliance on energy imports from the Middle East. The partial closure of the Strait of Hormuz led to the disruption of a large portion of global energy transportation, leading to a shortage of energy in the region. In India, fuel retailers raised aviation turbine fuel prices following the global surge caused by the Iran war, while the government implemented partial price pass-through to protect airlines. India relies heavily on Middle Eastern energy supplies, making it vulnerable to supply shocks, which led to higher procurement costs and supply constraints.
Europe
In Europe, jet fuel prices increased as a result of decreased imports from the Gulf and high reliance on foreign supplies. The European region was primarily dependent on the Gulf area for the supply of jet fuel via the Strait of Hormuz, but when this passage faced disruptions, the supply of the commodity was impacted in the region. Additionally, rising freight costs and limited alternative supply sources further tightened availability.
North America
For North America, the price of jet fuel increased because of the shortage in supply around the globe and rising import costs, partly because of the geopolitical tensions between Iran and the US. Although domestic supply offered some stability, the global supply deficit and higher logistical and freight charges pushed the jet fuel price curve upwards. Airlines faced margin pressure as fuel costs account for a significant share of operating expenses, leading to fare adjustments and operational changes.
About Jet Fuel
Jet fuel is a specialized aviation fuel used in aircraft turbine engines. It is primarily produced from refined crude oil fractions and is designed to provide high energy output, stability at low temperatures, and safe combustion performance. The most common types are Jet A and Jet A-1, with Jet A-1 being widely used for international aviation due to its low freezing point.
Jet Fuel Product Detail
Hs Code
2710
Supplier Database
Shell Aviation, ExxonMobil Aviation, BP Aviation, Chevron Corporation, TotalEnergies Aviation
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Production Process
Jet fuel production involves refining crude oil into aviation-grade kerosene through distillation, purification, and blending processes. Refineries adjust fuel properties such as density, flash point, freezing point, and combustion quality to meet aviation standards. Sustainable aviation fuel (SAF) production is also growing through pathways using biomass, waste oils, and synthetic fuels.
Industrial Uses
Jet fuel is mainly used in commercial aviation, military aircraft, cargo airlines, and private aviation. It powers passenger aircraft, helicopters, and defence aircraft requiring reliable turbine engine performance. Aviation fuel suppliers, airports, airlines, and aircraft operators maintain storage and distribution systems to ensure continuous fuel availability for flight operations.
Frequently Asked Questions
During Q1 2026, jet fuel prices generally moved upward across major aviation markets, supported by stronger passenger travel, steady cargo activity, and firmer crude oil costs. Europe saw additional pressure from refinery maintenance and reduced spot availability, while Asia-Pacific demand improved as airlines increased procurement ahead of spring travel schedules. In the USA, prices also remained sensitive to refinery outages and middle distillate supply tightness.
The jet fuel outlook for 2026 remains firm and volatile, with prices closely linked to crude oil, refinery runs, middle distillate inventories, airline traffic, and geopolitical risks. Demand is expected to stay supported by passenger travel and cargo operations. However, refinery constraints, wider jet fuel cracks, and regional import dependence may keep prices elevated, especially during peak summer travel periods.
The main factors affecting jet fuel prices in Q1 2026 were rising crude oil costs and concerns about a possible Strait of Hormuz closure. Higher crude oil prices increased the cost of producing jet fuel, directly pushing prices upward. At the same time, fears of disruptions in the Strait of Hormuz, a key global oil shipping route, created supply uncertainty and increased market risk premiums, further supporting higher jet fuel prices.
Major jet fuel markets include the United States, China, India, Japan, Singapore, the United Kingdom, Germany, the Netherlands, the United Arab Emirates, and Saudi Arabia. Large aviation hubs and refinery centers shape regional supply. Key companies include Shell, BP, ExxonMobil, Chevron, TotalEnergies, Sinopec, CNPC, Indian Oil, Reliance Industries, Neste, Valero, Marathon Petroleum, and Phillips 66.
A significant development in the jet fuel market during 2026 was the disruption caused by the fire at Viva Energy’s Geelong refinery in Australia. The refinery, one of the country’s key fuel production facilities, continued producing aviation fuel at reduced rates following the incident, while imports helped offset supply risks. The event highlighted the importance of refinery reliability, fuel-security planning, and diversified supply chains for aviation fuel markets, particularly in regions with limited domestic refining capacity.
Jet fuel is mainly produced from crude oil through refinery distillation, hydroprocessing, treating, blending, testing, storage, and airport distribution. It is a kerosene-range middle distillate designed for turbine engines. The value chain includes crude procurement, refinery production, quality certification, pipeline or marine transport, terminal storage, airport fuel farms, hydrant systems, into-plane fueling, and final use by commercial, cargo, military, and private aircraft.
The main commercial jet fuel grades are Jet A and Jet A-1. Jet A is mostly used in the United States, while Jet A-1 is widely used internationally. Jet A-1 has a lower maximum freezing point than Jet A, making it suitable for long-haul and colder operating conditions. Both grades must meet strict requirements for flash point, freezing point, thermal stability, contamination control, and handling safety.
Jet fuel demand is mainly driven by commercial passenger airlines, cargo airlines, military aviation, business aviation, airport operations, and tourism-linked travel. Passenger aviation remains the largest demand center because route frequency, aircraft utilization, and seat capacity directly affect fuel consumption. Air cargo supports additional demand through express logistics, e-commerce, pharmaceuticals, perishables, and high-value freight movement across long-distance trade routes.
A key policy development affecting jet fuel in 2026 was the UK Sustainable Aviation Fuel Mandate compliance framework. The mandate requires aviation fuel suppliers to supply an increasing share of SAF in the UK jet fuel pool, starting from 2% in 2025 and rising over time. This affected procurement planning by adding compliance, verification, and blending requirements alongside conventional jet fuel purchasing.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess jet fuel prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.
Our Price Analysis Methodology
About the Author
Pragati Agarwal
Senior Business Insights Analyst
Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.
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