Jet fuel prices near $5 per gallon in New York and Los Angeles

Jet fuel prices in New York and Los Angeles are edging closer to $5 per gallon, as strikes on Russian refineries in Ukraine and a slowdown in shipments from the Middle East put pressure on supplies, according to Investing.com. The fuel costs in these two major American cities have risen, while Gulf Coast prices, the U.S. benchmark region, have slightly decreased from the previous month.

On Thursday, jet fuel hit $4.95 per gallon in New York, marking its highest level since late March. In Los Angeles, prices rose to $4.91, the highest point since late April.

The surge in jet fuel prices could potentially raise the cost of air travel, contributing to inflation and impacting the travel sector. Delta Air Lines anticipates absorbing about $6 billion in extra fuel expenses this year compared to 2025, as stated in its earnings outlook. The airline projects a fuel price of $4.25 per gallon for the next quarter. Delta has less exposure to the price increases due to its ownership of an oil refinery and its focus on premium customers.

The war-related price hikes are hitting diesel supplies harder, both globally and in the U.S., as stockpiles are at their lowest seasonal levels on record. Jet fuel and diesel prices are intrinsically linked, as both are middle distillates produced through similar refining procedures. An increase in diesel production could potentially decrease jet fuel output, and vice versa.

While jet fuel production surged between April and September, it has since dropped back to levels seen in March. Stockpiles are still abundant, but they no longer reach the seasonal records observed in July and August.