UK Refineries Asked to Maximise Jet Fuel Production Amid Supply Fears

Why It Matters

Maximising domestic jet‑fuel production protects UK airlines from supply gaps and price spikes, preserving flight schedules and airport slot values during a volatile geopolitical period.

Key Takeaways

• UK refineries urged to boost jet fuel output amid Iran war
• Only four UK refineries remain after 2025 closures
• Global jet fuel shipments fell below half pre‑war weekly average
• Jet2 hedged 87% of fuel at $707 per tonne for summer
• Heathrow reports short‑term passenger rise but warns of uncertainty

Pulse Analysis

The escalation of the Iran‑Israel war has effectively shut the Strait of Hormuz, a chokepoint that moves roughly one‑fifth of the world’s oil and gas. With tanker traffic slashed, global jet‑fuel shipments fell to just 2.3 million tonnes in a week, less than half the pre‑conflict norm. British authorities, monitoring dwindling inventories, have asked the nation’s refineries to prioritise aviation fuel to shield airlines from abrupt shortages that could force groundings. This proactive stance reflects a broader industry trend of diversifying supply routes and stockpiling critical inputs amid heightened geopolitical risk.

The UK’s refining landscape has contracted dramatically, from 18 plants in the 1970s to just four operational sites—ExxonMobil’s Fawley, Phillips 66’s Humber, Valero’s Pembroke, and Essar’s Stanlow. These facilities now shoulder the dual task of meeting domestic demand for petrol, diesel and jet fuel while supporting export markets. Their limited capacity magnifies the impact of any supply shock, prompting the government to coordinate closely with airlines, airports and foreign partners to ensure a steady flow of jet fuel despite the external disruption.

Airlines are responding with financial safeguards and operational flexibility. Jet2, for example, has locked in 87 % of its summer fuel at an average $707 per metric tonne, providing cost certainty in a volatile market. Meanwhile, the UK’s slot‑use rules have been temporarily relaxed, allowing carriers to cancel flights without forfeiting valuable take‑off and landing slots. Heathrow has seen a modest passenger uptick as travelers reroute through the hub, but officials warn that sustained uncertainty in Middle‑East airspace could quickly reverse this gain. Collectively, these measures illustrate how the aviation sector is adapting to supply‑chain volatility while striving to maintain service continuity.