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Why is Jet Fuel So Cheap?

Published in Aviation Fuel Costs 2 mins read

Jet fuel benefits from relatively inexpensive transportation via pipelines, which is a primary factor in its lower cost compared to fuels like Avgas.

While the term "cheap" is relative and jet fuel prices fluctuate significantly based on market conditions, several factors contribute to its generally lower cost compared to other specialized fuels, such as Avgas (aviation gasoline used in piston-engine aircraft):

  • Efficient Transportation: Jet fuel is primarily transported via pipelines. Moving large quantities of fuel over long distances via pipeline is significantly cheaper than other methods like trucking or rail. Shipping a gallon of fuel 1,000 miles by pipeline can cost only pennies.

  • Refining Process: While the refining process itself is complex, jet fuel (specifically Jet A) is a kerosene-grade fuel, and its refining process is often simpler and less costly compared to producing highly specialized fuels like Avgas.

  • Lower Additives: Jet fuel requires fewer specialized additives compared to Avgas. Avgas needs additives to increase its octane rating and prevent engine knocking, which adds to its production cost.

It's important to note that jet fuel prices are still subject to fluctuations based on crude oil prices, geopolitical factors, supply and demand, and regional taxes. However, the efficient transportation methods and relatively straightforward refining process contribute to its generally lower price point compared to some other specialized fuels.

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