EU eyes emergency jet fuel reserves over Iran conflict concerns

The European Union is considering new measures to bolster energy security, including the potential requirement for member states to hold dedicated stockpiles of jet fuel, amid rising concerns over supply disruptions linked to the US-Israeli conflict with Iran, Reuters reports.

The European Commission proposed steps to mitigate the energy fallout from the conflict, including EU-wide monitoring of refinery output to maximise production capacity.

EU Energy Commissioner Dan Jørgensen said that introducing mandatory jet fuel reserves is “certainly something we’d consider,” though he cautioned that it is too early to determine whether fuel-sharing mechanisms between countries will be necessary.

“We will be able to, if necessary, introduce redistribution tools and other things that we don’t normally do in this sector. Normally, we let the market decide, but we can end up in a crisis where it is indeed security of supply that is the problem, and not only prices,” Jørgensen said in an interview with Reuters.

Under current EU rules, member states are required to hold reserves equivalent to 90 days of oil and oil products as a buffer against supply shocks. While jet fuel can be included in these reserves, there is no obligation to do so.

Although the EU has stated that jet fuel shortages are not currently a concern, officials warn that a prolonged disruption in the Strait of Hormuz could pose longer-term risks to supply chains.

The International Energy Agency has forecast potential shortages by June if Europe is able to replace only half of its usual Middle Eastern fuel imports.

Jørgensen also expressed optimism that European refineries could increase jet fuel output if required.

The impact of the conflict is already being felt across the aviation sector. Airlines including TUI Group and easyJet have issued profit warnings, citing uncertainty linked to the ongoing crisis.

By Vafa Guliyeva