Italian Refineries Increase Jet Fuel Output, Easing Supply Fears Amid Iran Conflict
Italy's Response to Jet Fuel Supply Disruptions
By Francesca Landini
Increased Domestic Production and Import Strategies
ROME, June 10 (Reuters) - Italian refineries have ramped up jet fuel production this year, reducing the risk that the Iran war could trigger shortages for the airline sector, senior officials representing the country's fuel producers and airport operators said on Wednesday.
The closure of the Strait of Hormuz has disrupted global jet fuel flows, driving up prices and forcing suppliers to reroute cargoes.
Shift in Supply Sources
Italy, which previously imported around 50% of the 5 million tons of jet fuel consumed annually by its airline sector, increased domestic production to cover 70% of demand in the first months of 2026, according to the head of fuel producers' association UNEM.
Continued Imports from the U.S. and Turkey
"In addition to national production, Italy imports significant volumes of jet fuel from the United States and Turkey and has continued to do so," UNEM President Gianni Murano said at the association's annual meeting.
Market Impact and Price Dynamics
Murano said the rise in Italian jet fuel production was driven by higher prices, adding that the Iran war had reshaped the pricing structure for oil products, making jet fuel more expensive than diesel and gasoline.
Record High Prices and European Market Effects
Iran's blockade of the strait — previously a transit route for around 400,000 barrels per day of jet fuel exports — pushed European prices above $200 a barrel in April, a record high.
Managing Disruptions and Future Outlook
The rerouting of some jet fuel imports also helped the airline sector manage disruptions caused by the conflict, Carlo Borgomeo, the head of the association of Italian airport operators, said at the UNEM event.
Supply Security for the Remainder of the Year
Italy is unlikely to face any jet fuel shortages for the remainder of the year, Borgomeo said.
(Reporting by Francesca Landini, editing by Giulia Segreti and Keith Weir)
