As the war in Iran strangles the flow of oil around the globe, California\u2019s jet fuel reservoirs are running low. <\/p>\n
The state \u2014 which refines much of its own fuel in El Segundo and elsewhere but still relies on crude oil imports \u2014 has seen its jet fuel stock decline by more than 25% from last year\u2019s peak to a level not seen since 2023, according to data from the California Energy Commission<\/a>. <\/p>\n The supply is shrinking as a global shortage is already affecting travelers\u2019 summer plans<\/a> with canceled flights and higher fares. It could even affect plans for people coming to Los Angeles for the 2026 World Cup, which starts in June, said Mike Duignan, a hospitality expert and professor at Paris 1 Panth\u00e9on-Sorbonne University. <\/p>\n \u201cPeople don\u2019t know exactly how this is going to escalate,\u201d he said. \u201cThere\u2019s a huge black cloud over the sea for the World Cup and the travel slump that we\u2019re seeing is all linked to this oil shortage.\u201d<\/p>\n As fuel supplies shrink, flight prices are rising. Airlines are adding baggage surcharges to cover fuel costs. Several routes leaving from smaller California hubs, including Sacramento and Burbank, have already been canceled. <\/p>\n Air Canada has suspended flights for this summer, cutting routes from JFK to Toronto and Montreal. <\/p>\n \u201cJet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible,\u201d the airline said in a statement<\/a> last week. <\/p>\n Europe had just more than a month\u2019s supply of jet fuel left last week, the International Energy Agency said. In an effort to cut costs, the German airline Lufthansa slashed 20,000 flights from its summer schedule this week.<\/p>\n Without a fresh oil supply<\/a> flowing through the Strait of Hormuz, the situation is unlikely to improve, experts said. The oil reserves countries and companies have in storage are helping fill shortfalls, but the squeezed supply chain could still wreak economic havoc.<\/p>\n \u201cWhen there\u2019s a shortage somewhere, everything is affected,\u201d said Alan Fyall, an associate dean of the University of Central Florida Rosen College of Hospitality Management. \u201cAirlines are being cautious, and I would say that is a very wise strategy at the moment.\u201d<\/p>\n California\u2019s jet fuel stock reached its lowest levels in two and a half years at 2.6 million barrels last week, down from a peak of more than 3.5 million barrels last year. <\/p>\n The California Energy Commission, which tracks fuel inventory, said the state\u2019s current jet fuel stock is sill sufficient.<\/p>\n \u201cCurrent production and inventory levels of jet fuel are within historical ranges<\/a>,\u201d a spokesperson said. \u201cAlthough supply is tight, no structural deficit has emerged yet. The present tightness reflects short\u2011term global market stress. As long as refinery operations remain stable, California is positioned to meet regional jet fuel needs.\u201d<\/p>\n Europe has been affected more directly because it relies on the Middle East for the vast majority of its crude oil and many refined products, experts said. California gets crude oil<\/a> from the Middle East but also from Canada, Argentina and Guyana.<\/p>\n The state has the capacity to refine around 200,000 barrels of jet fuel per day, most of it from refineries in El Segundo and Richmond. <\/p>\n The amount of crude oil originating in the state has been declining since the early 2000s, as state regulations and drilling costs have led to more imports<\/a>. <\/p>\n California has become particularly vulnerable to supply-chain shocks like the war in Iran, says Chevron, one of the companies that provides jet fuel in the state.<\/p>\n \u201cThe conflict in the Mideast Gulf has exposed the danger of California\u2019s decision to offshore energy production,\u201d said Ross Allen, a Chevron spokesperson. \u201cTaxes, red tape and burdensome regulations cost the state nearly 18% of its refinery capacity in just the past year, and we urge policymakers to protect the remaining manufacturing capacity.\u201d<\/p>\n In 2025, 61% of crude oil supply to California\u2019s refineries<\/a> came from foreign sources, according to the California Energy Commission. Around 23% came from inside the state, down from 35% five years ago. <\/p>\n The state\u2019s refining capacity has also been declining, said Jesus David, senior vice president of Energy at IIR Energy. The West Coast region\u2019s refining capacity has decreased from 2.9 million to 2.3 million barrels a day since 2019, he said. <\/p>\n \u201cCalifornia\u2019s had issues prior to the war,\u201d David said. \u201cNothing new has been built over the past 30 years, and California has closed a lot of capacity.\u201d<\/p>\n The result is higher prices for both gasoline and jet fuel in the state. Jet fuel at LAX<\/a> costs close to $15 per gallon this week, compared with almost $10 at Denver International Airport and $11 at Newark International Airport. <\/p>\n Gasoline prices have also been hit hard by the global conflict. Average gas prices<\/a> in California are close to $6 a gallon, around $2 higher than the national average.<\/p>\n