Prices of Greener Jet Fuel Rise With Oil Shock, Leaving Airlines Exposed
Photo Credit: Sustainable Aviation Fuel is thought to be more environmentally friendly than oil based jet fuel. Airbus
Skift Take
Sustainable aviation fuel was supposed to help airlines reduce their dependence on oil. The Iran war has exposed how far aviation is from that reality.
The price gap between sustainable aviation fuel and conventional jet fuel is narrowing, as oil market shocks from the Iran war push fuel prices higher across the board.
Latest data from S&P Global shows SAF [sustainable air fuel] in western Europe priced at around $2,500 per metric ton in March, up from $2,300 in late February. Over the past three weeks, SAF’s premium over jet fuel fell.
SAF, which is mainly made from used cooking oil and animal fats, known as HEFA, hydroprocessed esters and fatty acids, remains more expensive to make than rendering fossil fuels into jet fuel.
The shift reflects a surge in all fuel prices as a result of direct targeting of,
