Madrid: Spain's main oil refiners have assured the public that jet fuel supplies will remain secure through May, but they have also issued warnings about potential shortages this summer if the ongoing conflict with Iran persists, as reported by Spanish daily El Pais on Wednesday. The refiners, including industry giants such as Repsol, Moeve, and BP, are reportedly taking measures to increase production in order to meet the rising demand ahead of the anticipated peak travel season.
According to Anadolu Agency, these efforts come in the wake of Spain's preparations for what is expected to be a record-breaking tourism season, with the nation aiming to attract over 100 million international visitors this year. Any disruptions in the jet fuel supply could severely impact flight capacities during these peak travel months. The International Energy Agency has noted that Europe currently holds about six weeks' worth of aviation fuel reserves, providing a temporary buffer.
Josu Jon Imaz, CEO of Repsol, has recently highlighted the potential for a fuel shortage across Europe due to the ongoing conflict, with aviation fuel being particularly vulnerable. Despite this, Imaz remains cautiously optimistic about Spain's situation compared to other European nations. Echoing this sentiment, Spain's Ecological Transition Minister, Sara Aagesen, reassured the public on Tuesday that Spain produces approximately 80% of the jet fuel it consumes, placing it in a "privileged" position relative to many of its European counterparts.
At the European level, Energy Commissioner Dan Jorgensen offered a more cautious outlook, warning Spain on Tuesday that even if the conflict were to cease immediately, disruptions to fuel markets could persist for several months. Jorgensen emphasized that the European Commission is closely monitoring stock levels and may propose a strategy for sharing and redistributing supplies among member states if shortages become apparent. Aagesen indicated that Spain would be open to participating in such a mechanism.
In response to rising fuel costs and supply concerns, airlines across Europe are already adjusting their operations. German carrier Lufthansa announced on Tuesday its decision to cut 20,000 flights between April and October to conserve fuel, joining other airlines like KLM and SAS in taking similar measures. However, Spanish airlines have not yet announced cancellations and are instead planning to increase capacity for the summer, supported by domestic refining efforts and financial hedging strategies.
On Tuesday, Javier Gandara, president of Spain's airline association ALA, stated that there is no immediate threat to supply, but he advised consumers to purchase flights as soon as possible to avoid potential 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," Gandara explained.