Italian Refineries Boost Jet Fuel Production, Reducing Costly Imports
Italy's Response to Rising Jet Fuel Costs and Import Challenges
Increased Domestic Jet Fuel Production
ROME, June 10 (Reuters) - Italian refineries have ramped up the production of jet fuel this year to reduce the country's dependence on imports that have become more costly due to the Middle East crisis, the head of national fuel producers association UNEM said on Wednesday.
Jet Fuel Production Statistics
• Italy's jet fuel production accounted for 70% of domestic consumption in the first four months of this year, up from 50% last year, UNEM head Gianni Muraro said.
Sources of Jet Fuel Imports
• The country imports jet fuel mainly from the U.S. and Turkey, according to the association's data.
Market Factors Driving Production Shift
Impact of Price Spikes
• The increase in jet fuel production was triggered by a spike in prices, Muraro said.
Strait of Hormuz and Price Structure Changes
Effects on Oil Product Prices
• The effective closure of the Strait of Hormuz caused a change in the price structure of oil products making jet fuel costlier than diesel and gasoline.
Outlook for Jet Fuel Supply
Summer Supply Projections
• Italy will likely not suffer any jet fuel shortage during the summer, he added.
(Reporting by Francesca Landini, editing by Giulia Segreti)
