Spanish refiners guarantee jet fuel through May, acknowledge summer risks

Spain’s main oil refiners say jet fuel supplies are secure through May but warn shortages could occur this summer if the Iran conflict continues, Spanish daily El Pais reported Wednesday.

The refiners are also working to secure sufficient volumes for June, the daily reported citing industry sources.

Firms, including Repsol, Moeve and BP, are increasing production to meet rising demand ahead of the peak travel season.

This comes as Spain prepares for a record tourism season, with the country aiming to surpass 100 million international visitors this year. Any disruption in jet fuel supply could impact flight capacity during peak travel months.

According to the International Energy Agency, Europe currently holds around six weeks of aviation fuel reserves.

‘Privileged position’ in EU

Josu Jon Imaz, CEO of Repsol, recently warned of a potential fuel shortage in Europe due to the war, particularly affecting aviation fuel.

However, he expressed relative optimism about Spain’s position compared to other countries.

Spain’s Ecological Transition Minister Sara Aagesen sought to reassure the public Tuesday, saying the country produces around 80% of the jet fuel it consumes, putting it in a "privileged" position compared to many European peers.

At the European level, Energy Commissioner Dan Jorgensen struck a more cautious tone, warning Madrid on Tuesday that even if the conflict ends immediately, disruptions to fuel markets could last months.

Jorgensen said the European Commission is monitoring stock levels closely and could propose sharing and redistributing supplies among member states if shortages emerge.

Aagesen has said Spain would be open to joining such a mechanism.

Airlines adjusting operations

Across Europe, airlines are already adjusting operations in response to rising fuel costs and supply concerns.

German carrier Lufthansa said Tuesday it would cut 20,000 flights between April and October to save fuel, joining other airlines such as KLM and SAS.

So far, Spanish airlines have not announced cancellations and are instead planning to increase capacity for the summer, supported by domestic refining and financial hedging strategies.

On Tuesday, the head of Spain’s airline association ALA said there is no threat to supply for now but advised consumers to buy flights as soon as possible to avoid price increases.

“What is clear is there is a cost increase for companies, and it is unclear which part can be covered by their margins and which by price hikes,” ALA president Javier Gandara said.