The UK government has instructed domestic refineries to ramp up jet fuel production as part of contingency planning, amid mounting concerns that the ongoing Iran war could lead to flight cancellations due to fuel shortages.
Government Response to Supply Disruptions
Energy Minister Michael Shanks confirmed that the government is closely monitoring UK jet fuel stocks and collaborating with airlines, airports, fuel suppliers, and other governments. Carriers are facing soaring fuel costs as a result of the conflict, which has effectively halted normal fossil fuel flows from the Gulf region.
The de facto closure of the Strait of Hormuz, a critical shipping channel through which approximately one-fifth of the world's oil and gas passes, has severely disrupted supply chains since the outbreak of war.
Shanks stated in a ministerial announcement: "UK airlines typically purchase fuel several months in advance, and aviation fuel suppliers maintain bunkered stocks. The UK imports jet fuel from various countries not dependent on the Strait, including the United States."
He added: "Airlines UK have indicated that UK carriers continue to operate normally and are not currently experiencing jet fuel supply issues. The government remains engaged with partners to monitor and mitigate any potential disruptions."
UK Refinery Landscape
The UK now has only four operational refineries following closures at Grangemouth and Lindsey in 2025. These are: Fawley in Hampshire (ExxonMobil), Humber in Lincolnshire (Phillips 66), Valero's Pembroke refinery in Wales, and Essar's Stanlow site in Cheshire.
These facilities produce a range of refined products, including petrol, diesel, jet fuel, and fuel oil, catering to domestic demand and exports. The number of UK refineries has declined from a peak of 18 in the 1970s, alongside a reduction in the country's petrol and diesel output.
Global Jet Fuel Shipments Plummet
Global jet fuel shipments dropped to record lows last week. According to initial data from Kpler, which began tracking shipments in 2017, just under 2.3 million tonnes of jet fuel and kerosene were transported by ship in the seven days to April 26. This figure represents less than half the average weekly volume shipped before the war.
Airlines have reassured that no immediate supply problems are anticipated within their typical four-to-six-week planning horizon. However, some carriers have already announced flight cancellations and are lobbying for government support amid rising fuel prices and potential supply crises.
Slot Exemptions and Airline Measures
To minimise disruption, airlines that cancel flights due to fuel shortages will not lose their valuable takeoff and landing slots at busy airports. These slots are normally forfeited if flights fail to operate over a period. On Friday, it was announced that Airport Coordination Ltd, the independent body managing UK airport slots, can grant exemptions to the "use-it-or-lose-it" rule during shortages, preventing airlines from flying unnecessary flights just to protect slots.
Budget carrier Jet2 stated on Wednesday that it remains in contact with its fuel suppliers and airports. The group has hedged 87% of its fuel requirements for the peak summer season at an average price of $707 per metric tonne, providing "a high degree of cost certainty." Jet2 noted that "current geopolitical uncertainty" over the Middle East conflict is prompting holidaymakers to book trips closer to departure, making it challenging to predict bookings for the summer season and beyond.
Heathrow Airport also reported an "uncertain outlook" due to the conflict, despite a short-term boost in passenger numbers from airspace closures in the Middle East. Almost 19 million passengers travelled through Heathrow in the first three months of the year, a 3.7% increase year-on-year. Heathrow said it had "temporarily absorbed demand from elsewhere" but does not expect this to continue for the rest of the year given "significant uncertainty" in the region.
