The European Union (EU) will urge members to cut their dependence on Middle Eastern jet fuel and look into increasing imports from the US, in new guidelines expected next week, an official source told Reuters, as the Iran war disrupts global supply.
The plans, previously
unreported and still being finalised, will put a greater focus on
self-sufficiency and resilience via Sustainable Aviation Fuel (SAF) or
synthetic fuels.
European airlines have
warned of potential jet fuel shortages within weeks as a result of the Iran
war, which could disrupt the summer travel season.
Europe is particularly
vulnerable as it imports some 30 per cent to 40 per cent of its jet fuel, at
least half of that from the Middle East.
The EU's non-binding
recommendations will emphasise the bloc's limitations in increasing jet fuel
output domestically and provide guidance on how to handle potential shortages,
the source said.
The person asked not to be
named because the discussions are ongoing and the draft is not yet finalised. A
European Commission spokesperson confirmed plans to present a response to the energy
crisis next week, including measures on jet fuels.
Availability of supply
"remains the primary concern," the Commission spokesperson said,
adding that if supply remained snarled through the Strait of Hormuz, the EU
could launch a possible coordinated release of jet fuel stocks.
Iran opened the
Strait of Hormuz on Friday (April 17), a key gateway for energy flows from the
Gulf, after a ceasefire accord in Lebanon, though US President Donald
Trump said a naval blockade remains in place until a deal is sealed with
Tehran.
The EU spokesperson
said he hoped a resumption of safe passage through the Strait would last, but
reflecting the ongoing uncertainty, added: "Let's see".
FLIGHT CANCELLATION
THREAT GROWS
Flights in Europe
could start to be cancelled from the end of May due to a lack of jet fuel, the
International Air Transport Association's director general Willie Walsh said
on Friday. Airlines are cutting flights and grounding some planes.
The source familiar
with the EU's plans said the document would lay out guidance for airline
handling issues in the case of fuel shortages such as losing airport slots due
to cancellations and the EU's anti-tankering rule, designed to prevent planes
from loading extra fuel in cheap locations.
It will clarify
whether a fuel shortage can be considered exceptional enough for airlines to
avoid paying compensation for cancellations.
The source added that
the EU has decided airlines' calls for changes to or the suspension of the
Emissions Trading System (ETS) and SAF allowances were not justified.
The European
Commission also plans to introduce EU-wide mapping of refining capacity for
oil products and introduce measures "to ensure that existing refining
capacity is fully utilised and maintained", a draft proposal earlier seen by Reuters showed.