Sustainable Aviation Fuel (SAF) Price Trend Analysis 2026: Market Insights, Latest News, Price Drivers, Historical Prices & Supply Demand Analysis

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Written ByRakesh Nandi

Sustainable Aviation Fuel (SAF) Latest Development

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Sustainable Aviation Fuel (SAF) Price Trend June 2026

Product Region Incoterm Basis Price Last Updated Month
Sustainable Aviation Fuel (SAF) China FOB USD 2,510.00/MT June 2026
Sustainable Aviation Fuel (SAF) India CIF USD 2,598.00/MT June 2026
Sustainable Aviation Fuel (SAF) USA FOB USD 987.75/MT June 2026
Sustainable Aviation Fuel (SAF) Germany CIF USD 2,726.75/MT June 2026
Sustainable Aviation Fuel (SAF) Australia CIF USD 2,576.00/MT June 2026

Stay Updated with the Latest Sustainable Aviation Fuel (SAF) Prices, Historical Data, and Tailored Regional Analysis

Sustainable Aviation Fuel (SAF) Price Trend Q1 2026

  • Sustainable aviation fuel prices moved firm through Q1’26 as limited supply, stronger jet fuel values, and compliance-led buying shaped Asia, Europe, and North America.
  • Used cooking oil, waste oils, and other bio-based feedstocks remained tight early in the quarter, keeping SAF production costs elevated before energy markets tightened further.
  • Airline demand remained steady, with European blending mandates, corporate decarbonization targets, and North American credit-linked buying supporting SAF procurement across the quarter.

Sustainable aviation fuel prices opened Q1’26 on a firm note as limited certified supply and tight biofeedstock availability kept production economics elevated. Early in the quarter, suppliers faced restricted access to used cooking oil and waste-based feedstocks, while Europe’s SAF demand remained supported by blending obligations and Asia watched Chinese export allocations against estimated European demand of around 1.38 million MT annually. In North America, U.S. West Coast SAF markets strengthened as airline procurement and biofuel credit-linked demand supported buying. By the latter part of the quarter, the Iran war and Strait of Hormuz closure tightened crude and jet fuel markets, raising freight, insurance, and energy costs. Since SAF is priced against conventional jet fuel, stronger fossil jet values lifted outright SAF levels even where premiums narrowed. This kept Q1’26 SAF prices firm across regions, with Europe and Asia more exposed to import and feedstock risks, while North America remained supported by policy-linked demand.

Analyst Insight

According to Procurement Resource, near-term SAF prices are likely to stay firm if jet fuel remains volatile and biofeedstock supply stays tight. Any easing will depend on higher SAF output and calmer Middle East shipping conditions.

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About Sustainable Aviation Fuel (SAF)

Sustainable Aviation Fuel (SAF) is a low carbon alternative to conventional jet fuel made from renewable feedstocks such as waste oils, lipids, agricultural residues, and biomass. SAF reduces lifecycle greenhouse gas emissions compared to traditional fossil jet fuel. It is drop in compatible with existing aircraft engines and fueling infrastructure, enabling airlines to lower carbon impact without changing fleet or fueling systems.

Sustainable Aviation Fuel (SAF) Product Detail

Hs Code
2710
Supplier Database

Neste, World Energy LLC, Alder Energy LLC, SkyNRG, Shell plc

Synonyms

SAF, Sustainable Jet Fuel, Bio Jet Fuel, Renewable Aviation Fuel, Green Jet Fuel

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

Sustainable Aviation Fuel (SAF) is produced by : converting renewable feedstocks such as used cooking oil, agricultural residues, and municipal waste through pathways like HEFA (Hydroprocessed Esters and Fatty Acids), FT (Fischer Tropsch), and Alcohol to Jet (ATJ). Renewable hydrogen and catalytic upgrading create hydrocarbon molecules similar to kerosene, yielding drop in jet fuel that meets aviation specifications and sustainability criteria.

Sustainable Aviation Fuel (SAF) Industrial Uses

SAF is used primarily to power commercial and military aircraft in place of conventional jet fuel. It supports airlines’ decarbonization goals and contributes to compliance with environmental regulations and emissions reduction targets. SAF also plays a role in corporate sustainability programs and carbon offset strategies within the aviation sector.

Frequently Asked Questions

During Q1 2026, SAF prices remained at a premium to conventional jet fuel because supply was still limited and production costs stayed high. Prices were shaped by used cooking oil, animal fats, renewable diesel competition, refinery margins, and regional blending mandates. Buyers also faced higher delivered costs where freight and jet fuel volatility affected aviation fuel procurement.
The SAF outlook for 2026 remains positive, but supply growth is expected to remain slower than airline demand. Airlines are under pressure to meet blending requirements and voluntary emissions targets, while producers face feedstock competition and high capital costs. The market is expected to grow, but availability will remain tight at many airports without stronger production incentives and logistics investment.
Feedstock cost was the main driver of SAF prices in Q1 2026. Used cooking oil, tallow, vegetable oils, and other waste-based feedstocks were in strong demand from renewable diesel and biofuel producers. This competition raised input costs for HEFA-based SAF. Jet fuel volatility also affected SAF contract discussions because many airline procurement models compare SAF premiums against fossil jet benchmarks.
The United States and Europe currently lead the SAF market, supported by policy incentives, blending mandates, and large-scale refinery investments. Key SAF hubs include the United States, Finland, the Netherlands, Singapore, the United Kingdom, and China. Companies such as Neste, World Energy, and major energy producers continue expanding production capacity, while Europe's ReFuelEU Aviation rules and national mandates support long-term demand growth.
Recent SAF market developments include the continued ramp-up of Neste’s Rotterdam refinery, which can produce up to 500,000 tonnes of SAF annually, and growing implementation of aviation fuel mandates in Europe and other regions. Producers continued expanding renewable fuel capacity, while airlines increased SAF procurement to comply with blending requirements and corporate decarbonization targets, supporting long-term market growth despite ongoing supply constraints.
SAF can be produced through several routes. The most established route is HEFA, which uses used cooking oil, animal fats, vegetable oils, and other lipid feedstocks. Other routes include alcohol-to-jet using ethanol or isobutanol, Fischer-Tropsch using biomass or waste-derived syngas, and e-SAF using green hydrogen with captured carbon dioxide. Feedstock quality, certification, and availability strongly affect final fuel cost.
Commercial aviation is the main demand driver for SAF. Airlines use SAF to reduce lifecycle emissions while continuing to operate existing aircraft and airport fuel systems. Cargo airlines, corporate aviation, and defense aviation also support demand. Demand is strongest where policy mandates, airline net-zero targets, corporate travel programs, and airport supply infrastructure create firm offtake commitments.
The EU’s ReFuelEU Aviation regulation remained one of the most important policy drivers in 2026. The regulation requires fuel suppliers to provide at least a 2% SAF blend at EU airports beginning in 2025, with progressively higher targets in future years. These requirements strengthened SAF demand, encouraged investment in production capacity, and increased focus on fuel certification, reporting, and airport supply infrastructure.
The main challenges are high production costs, limited waste-based feedstock, slow project financing, certification requirements, and uneven airport distribution infrastructure. Producers must secure long-term feedstock and offtake contracts before investing in capacity. Airlines must manage SAF premiums while meeting policy and emissions targets. These constraints keep SAF strategically important but commercially difficult to scale quickly.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess SAF 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

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About the Author

Rakesh Nandi profile photo

Rakesh Nandi

Team Lead - Market Research

Leading procurement-focused market intelligence across chemicals, composites, advanced materials, aerospace & defense, and energy, delivering commodity forecasts, supply chain analysis, and competitive benchmarking to support sourcing decisions.

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