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Italy reduces its reliance on imported jet fuel amid disruptions caused by the Iran war

Senior officials from the fuel producers and airport operators in Italy said that the refineries had increased jet fuel production this year to reduce the risk of a shortage for the airline industry due to the 'Iran War. The Strait of Hormuz closure has caused global jet fuel supplies to be disrupted, which has led to higher prices and forced suppliers of cargoes to reroute their shipments. According to the head of fuel producers' union UNEM, Italy imported 50% of its?5million tons of jet fuel annually. By 2026, it will increase domestic production to 70% to meet demand. UNEM President Gianni murano stated that "in addition to its national production, Italy imports significant quantities of?jet-fuel from the United States" and Turkey. This practice has been continued. Murano stated that the increase in Italian jet-fuel production was due to higher prices. He added that the 'Iran war' had changed the pricing structure of oil products and made jet fuel more costly than gasoline or diesel. Iran's blockade on the Strait of Hormuz, which was a transit route for around 400,000 barrels of jet fuel per day, drove European prices to a record high of $200 a barrel in April. Carlo Borgomeo said that the rerouting some jet fuel imports helped the airline industry manage the disruptions caused by conflict. Borgomeo stated that Italy will not face any shortages of jet fuel for the rest of the year. Francesca Landini reported, Giulia Segrit and Keith Weir edited.

(source: Reuters)