The EU reassures: “No cause for alarm over aviation fuel, but we are preparing for possible shortages”

Brussels – There is no shortage of aviation fuel in Europe, but the European Union is preparing for possible scenarios of scarcity. With this statement, issued during the usual daily press briefing, the European Commission is attempting to allay concerns regarding the alarm over European aviation fuel stocks—which are reportedly sufficient for only six weeks—issued by the Executive Director of the International Energy Agency (IEA), Fatih Birol, yesterday (16 April) to the Associated Press. 

“The Oil Coordination Group met yesterday and concluded that there are currently no fuel shortages in the European Union,” explained the Commission’s spokesperson for Climate and Energy, Anna-Kaisa Itkonen. “However, we are preparing for possible shortages in the supply of aviation fuel, which remains a cause for concern” because “our refineries cover around 70 per cent of EU consumption, whilst the remaining 20 per cent obviously depends on imports.” “If the situation in the Strait of Hormuz were to persist, the European Union would prepare to launch possible coordinated actions regarding aviation fuel,” she specified. 

According to the EU Commission spokesperson, concerns about an impending flight crisis are unfounded: “There are no indications of systemic fuel shortages that could lead to widespread flight cancellations. And this is something we are monitoring closely, including in collaboration with the International Energy Agency and our industry.” Although some airlines have taken measures such as grounding aircraft and reducing flights, Brussels noted that these are individual decisions and not a sign of a widespread emergency. “These are decisions taken by individual airports, but we are not seeing a widespread and systematic fuel shortage,” commented Itkonen. 

Furthermore, the spokesperson pointed out that Member States hold 90 days’ worth of security stocks, comprising both crude oil and refined products such as kerosene, ready for release to the market if necessary. “In the European Union, we have legislation requiring Member States to maintain 90 days’ worth of strategic reserves, for both oil and gas. As regards oil, it is up to Member States to decide what proportion of these 90 days’ worth of reserve stocks is allocated to crude oil and what proportion to refined products, including kerosene and aviation fuel,” she explained. “We must therefore bear in mind that there are commercial stocks and then there are strategic stocks. And generally speaking, at this stage we are talking about commercial stocks,” she added. 

The Commission’s position does not align with recent estimates from the International Energy Agency, which had predicted that European stocks would run out in just six weeks. Previously, the IEA’s director, Birol, had even spoken of the possibility of the “biggest energy crisis ever.” And she plays down the tension: “Despite assessments of how long the situation might last, this does not mean we will run completely out of aviation fuel,” said Itkonen. The spokesperson pointed out that “aviation fuel is part of a global market with a continuous supply, supported by production, imports, and constant stocks” and, therefore, “there is considerable capacity to supply aviation fuel even within Europe.” 

However, “we are obviously aware, as is everyone else, that the aviation fuel markets are under strain and are being closely monitored.” For its part, “the European Union maintains emergency stocks in accordance with European legislation, which can be released onto the market if necessary,” she reiterated. “So far, the market is managing this tense situation without any shortages, so at the moment we are in a situation of real-time or very frequent coordination, with full awareness of the situation and its constant evolution,” and “this helps us determine the next steps,” she specified. And clarified: “We are not simply waiting and watching, but we are taking very, very active action.”