The European Commission has proposed the creation of a bloc-wide jet fuel observatory, which will be tasked with monitoring the availability of transport fuels, including jet fuel. This comes after the EU commissioner for transport, Apostolos Tzitzikostas, said that for now, shortages are only a future risk, although the bloc wants to be prepared in case they happen.

According to the plan AccelerateEU, presented on April 22, the Commission will initially coordinate with member states, fuel suppliers, and the aviation sector on the options for securing jet fuel from alternative sources unaffected by the ongoing closure of the Strait of Hormuz. It will consult on optimising distribution, although no mandatory fuel-sharing mechanisms have yet been proposed.

The Commission highlighted that bloc-wide monitoring will allow European refinery output to be "maximised" given the uneven geographic distribution of jet fuel production across the continent.

Brussels plans to review the rules on the release of strategic stocks, in case they turn out to be necessary later this year.

The plan also calls for "exploring alternative supplies, and imported fuel types should be considered." The Commission specifically named US-made JET fuel, although it did not mandate or facilitate such imports in any way just yet.

In May, the Commission plans to "clarify existing flexibilities" regarding the rules on airport slots, fuel tankering, PSO flights, and the use of imported fuels. The aviation industry has been calling for the relaxation of some of these rules to minimise the operational complexities in case fuel becomes scarce.

"If the situation worsens and existing flexibilities no longer suffice, the Commission will propose temporary changes to the applicable EU legislative framework, where justified," the regulator said.

The EU is also planning to review its state aid guidelines to facilitate targeted assistance to sectors most impacted by the rapid fuel price spikes. While the Commission did not name the industries, aviation is likely to be included.

Emergency reserves

Going forward, the mechanisms now recommended as voluntary "could become mandatory," Tzitzikostas warned the day before the plan was officially unveiled.

"We will assess whether we need a minimum stock obligation for jet fuel, requiring member states to maintain minimum emergency reserves," he said during an April 21 press conference.

He also underlined that the EU maintains emergency stocks of jet fuel that "can be and will be released only if necessary." The commissioner stressed that Brussels would strive to ensure that any such releases are made in "full transparency" to prevent any market distortion.

At the same time, Tzitzikostas underlined that, so far, there are no jet fuel shortages across the continent. So airlines cancelling flights are not allowed to use the excuse of extraordinary circumstances to deny passengers compensation. Cancellations caused by demand changes or expensive jet fuel are voluntary, and do not absolve airlines from their obligations to refund and compensate passengers, the commissioner stressed.

The European Union normally imports around 30% of jet fuel required, most of it from Kuwait, the UAE, and India. However, while the majority of jet fuel is refined within the bloc, it still relies on imported crude oil. According to sustainability consultancy ERM, only 3% of jet fuel used in the EU is made from local crude.

AlternativeEU also includes wide-ranging plans for accelerated electrification and the energy independence of the EU, which in turn includes the manufacturing of e-SAF fuels in Europe. However, the Commission conceded that the ramp-up of the hydrogen market is "slower than expected", and it "will propose a targeted review of the production criteria for renewable hydrogen, while safeguarding existing investments."