UK businesses brace for jet fuel rationing

5 hours ago

Goldman Sachs warns that Britain is the most vulnerable European economy to a jet fuel crisis due to depleted stockpiles, high import dependence, and a hollowed-out refining base.
Jet fuel prices have doubled since late February, leading to airlines cutting seats and passing higher costs to passengers via increased ticket prices and freight rates.
Major airlines like British Airways (IAG), Air France, and American Airlines anticipate billions in additional fuel costs, resulting fare rises, and reduced passenger perks.
The UK faces "critically low" fuel inventories within weeks, with potential rationing threatening airlines, freight operators, and SMEs reliant on air links.
Structural weaknesses include the closure of Grangemouth refinery, uncertainties at Prax Lindsey refinery, and heavy reliance on Middle Eastern imports via the closed Strait of Hormuz.
The European Commission is preparing guidance on jet fuel, while carriers bid for cargoes from Asia and the US, pushing prices higher due to the Hormuz closure.
Supply disruptions may start mid to late June, jeopardizing the summer trading window for hospitality, travel, and export-led SMEs.
British SMEs, including tour operators and exporters, must prepare for higher costs, longer delays, and potential jet fuel rationing.

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