Airlines Face Price-Gouging by Green Jet Fuel Sellers
The EU has introduced a minimum blending mandate of 2% for sustainable aviation fuel (SAF), set to rise to 6% by 2030.
Fuel suppliers are inflating costs for airlines through surcharges, nearly doubling prices compared to market rates, according to IATA's director general, Willie Walsh.
Fuel suppliers selling SAF are able to "extract additional profit from airlines by charging these compliance surcharges"
IATA is calling for policy reform to address this issue, which is affecting airlines' operations.
Airlines are obliged to purchase the available fuel for their operations, while fuel suppliers are responsible for providing fuel with progressively stronger blends of SAF at airports.
Author's summary: Airlines face inflated fuel costs due to EU green jet fuel mandates.
- EU minimum blending mandate: 2% (set to rise to 6% by 2030)
- Fuel suppliers are inflating costs through surcharges
- IATA is calling for policy reform