Sweden’s government warned today of a potential jet fuel shortage in the Scandinavian country due to supply disruptions caused by the Middle East war and the closure of the Strait of Hormuz.
“We want to provide an early warning that there is a risk of a jet fuel shortage. This is based on an assessment by the Swedish Energy Agency,” Energy Minister Ebba Busch said at a press conference.
“Even if a lasting peace deal (between the United States and Iran) were to be in place tomorrow, it would likely still take time before oil and gas supplies are restored,” Busch said, speaking alongside Prime Minister Ulf Kristersson and Energy Agency director Caroline Asserup.
There is currently no systemic shortage of jet fuel in the European Union. But concerns are rising as 20 percent of the jet fuel used by the EU normally transits through the Strait of Hormuz.
Kristersson said Sweden was less affected by the current energy crisis than many other countries, noting Swedish electricity production was largely based on nuclear, hydro and renewable energies.
But it could be affected down the road if the conflict were to deteriorate and continue for a long time.
“It is also important to distinguish between different types of fuel, as they have different markets and conditions,” Asserup said.
When it comes to jet fuel, “we are no longer in a normal situation.”
“We have seen no delivery disruptions” for now, she said.
“What we are seeing, however, are price fluctuations, and it is due to these price movements that some companies, for commercial reasons, may sometimes decide to cancel flights,” Asserup said.
Sweden and the Nordic countries have a relatively large refining capacity, mainly thanks to North Sea oil. This oil is now in higher demand, which has led to higher prices.
