Owning a jet is a testament to one’s wealth. In addition to the expensive purchase price, owners must have a large budget for regular maintenance and refueling. As the global crude oil prices fluctuate daily, the jet fuel cost per gallon is affected. So how much does it cost today? Scroll down to learn!
In this article:
How Much Does Jet Fuel Cost?
The average jet fuel price changes every day. According to IATA, on February 16, 2024, the price was 276.21 cents/gal (equivalent to $116.01 per barrel). It increased 1.2% compared to a week earlier and 6.6% compared to the previous month.
Below is the development of jet fuel prices in recent weeks:
| Week Ending | Weekly Average Price($/bbl) | Fluctuation Rate Vs Prior Week’s Average |
| 16-Feb-2004 | 116.01 | 1.2% |
| 9-Feb-2024 | 114.59 | 1.7% |
| 2-Feb-2024 | 112.66 | 1.3% |
| 26-Jan-2024 | 111.24 | 2.1% |
| 19-Jan-2024 | 108.92 | 2.0% |
Jet Fuel Cost Per Gallon By Region
Take a look at the analysis as follows for the market overview:
| Region | Share In Global Index | Weekly Average Price | Fluctuation Rate Vs Prior Week’s Average | |
| cts/gal | $/bbl | |||
| North America | 39% | 291.45 | 122.41 | 0.9% |
| Europe & CIS | 28% | 276.55 | 116.15 | 0.6% |
| Asia & Oceania | 22% | 253.72 | 106.56 | 2.5% |
| Middle East & Africa | 7% | 255.18 | 107.18 | 2.3% |
| Latin & Central America | 4% | 286.10 | 120.16 | 0.7% |
Which Determines Aviation Fuel Prices?
Global Crude Oil Prices
The tense situation in various regions worldwide has led to a rapid increase in crude oil prices. Early in the year, sanctions against Russia due to the ongoing war with Ukraine continued to reduce fuel supplies. Attacks on oil plants in this country further disrupted the supply chain.
The “low supply, high demand” situation worsened with the Middle East conflict between Israel and South Lebanon. Shipping vessels must choose longer voyages to avoid the Red Sea, which delays the transportation of goods.
Meanwhile, the aviation industry competes for market share in crude oil supply. A shortage of raw materials may occur, especially as the logistics and petroleum production markets gear up for increased activity during the upcoming summer season. The imbalance between supply and demand has pushed crude oil prices to skyrocket.
Tax And Fees
The price of jet fuel is higher in some countries as their governments impose excise taxes. According to the NBAA, on average, jet owners have to pay 21.9 cents per gallon.
Supply And Demand
Fuel cost differs in different locations. Due to sustained demand, popular tourist destinations often witness high fuel prices during peak tourist seasons or throughout the year.
Similarly, economic hubs with a significant influx of business travelers experience price pressure. The same situation applies to politically-tense areas. Conflicts cause disruptions in supply chains and refinery production, leading to above-average fuel prices.
Conversely, remote or less touristy areas have a lower demand for fuel. This allows for increased storage and less competition, thereby stabilizing prices. Jet owners benefit most if their hangars are near oil refining centers. Diverse aviation fuel suppliers nearby create a competitive environment where they attract customers based on pricing.
Fuel Consumption
How much fuel a jet burns in an hour varies among different models, which has a say in your total expense. Below is the fuel consumption of some jets on the market:
| Aircraft Model | Type | Fuel Burn (gal/hour) |
| Cirrus Vision SF50 | Very light jet | 81 |
| Honda Jet Elite | Very light jet | 118 |
| Citation CJ1 | Light jet | 134 |
| Citation Encore | Light jet | 205 |
| Phenom 300E | Light jet | 183 |
| Citation Excel | Midside jet | 250 |
Fuel Hedging Contract – The Key To Reducing Airline Fuel Costs
In response to the constant fluctuation of the fuel price, most airlines “hedge” their fuel cost, meaning they will agree on a fixed price for a certain period. Suppose you agree on a $500/ton price for 1 year. You will pay that price for the whole year, regardless of global price fluctuations. Of course, you have to sacrifice the savings if future prices fall.
FAQs
Is Jet Fuel Cheaper Than Gas?
Yes. However, this price comparison may vary depending on location, market conditions, fuel type, local taxes and regulations, etc.
How Long Will High Jet Fuel Prices Last?
The U.S. The Energy Information Administration predicts the price uptrend could last through the summer due to a crude oil shortage and a boom in aviation travel and economic activity.
See more: How Much Fuel Does A Boeing 747 Hold?
Conclusion
It is very difficult to predict the future development of jet fuel prices due to political events and other variables. As a rule of thumb, a fuel shortage leads to a higher cost of aviation fuel. Follow our blogs to catch up with the latest updates!
