Jet A Fuel Prices - Why So High
Jun 4th 2008FTCAviation Articles
With the price of a barrel of crude oil skyrocketing, it is clear that the price of jet a fuel would too increase. North America is one of the leading consumers of jet a fuel, and prices here have increased significantly, putting a strain on business travelers and vacationers as the price for airline tickets increases. Jet a fuel prices are currently increasing at the rate of around 2.5% per week and in the last twelve months the price of jet a fuel in North America alone has increased over 80%.
The increase in jet a fuel prices contributes to the strain on our economy because jet a fuel is used to transport people, food, and supplies throughout the world. We see the affects of the increasing jet a fuel prices all around us. The average consumer is affected by the steady increase of jet a fuel prices in the form of groceries. The increasing cost of transporting goods to the shelves has caused a steady increase in the price of food. And if airline travel was already only a means of transportation for the rich, with increasing jet a fuel prices only the mega rich will be able to fly as commercial airlines cut flights and increase prices.
We see a more obvious pattern when we step back and analyze the jet a fuel prices from the 1970s to present. Between 1977 and today, there has been over a 116% increase in the price of a barrel of jet a fuel as the price has risen from $15.21 USD to over $88.25 USD. This incredible increase has strained the global economy and has had vas implications on American citizens lives. Fewer and fewer Americans can even afford to go on vacation, as simply flying to exotic locations may far exceed the cost of staying there.
The rise in jet a fuel prices has a direct correlation with American heating bills. The price of jet a fuel as recorded by the EIA directly affects the price of the oil we use to heat our homes. Therefore, the steady increase in jet a fuel prices has certainly affected the average utility bill for an American. This creates even more stress for the typical American, who is already under detrimental financial burden.
Just to demonstrate how dominating the US market is on jet a fuel, consider this: US passenger jets account for nearly 90% of the fuel consumed by all US airlines, and this 90% (or US passenger jets) accounts for nearly 40% of the global consumption of jet a fuel. Now if we consider that the steady increase of jet a fuel prices is going to continue, it is assumed that this trend will lead further strain on the US economy as we continue to pay higher oil, airline, and heating prices.
Flying domestic? Try staying within the north central and northwest regions of the United States. These areas of the country actually have the lowest jet a fuel prices. Therefore, you will save a bit of money on airline tickets, in-flight services, and any other surcharges.
