What is Jet Fuel
Jet fuel or aviation turbine fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is colorless to straw-colored in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1, which are produced to a standardized international specification
Jet Fuel Prices In South Africa
JET-A1-FUEL.com provides jet prices per Barrel, per metric ton per gallon, and per liter today in South Africa. JET FUELS rates: JET A1, JP-54, ST-1.
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Today: 29 August 2022 JET A1 Price in South Africa.
| JET FUELS | RATE USD |
|---|---|
| Jet A1 per MT (metric ton) in USD | R19053.43 |
| per Gallon in USD | R57.42 |
| cost per Liter in USD | R15.27 |
Fuel Price Hedging
The prices airlines actually pay for their fuel vary substantially depending on what price they’ve “hedged” the fuel at. Hedging is where you agree on a constant price for fuel for a set period of time in the future. This helps an airline to reduce risk and fixed costs which can be important for financial planning. For example, a fixed amount of fuel, let’s say 5 million tonnes, might be hedged at $600 per metric tonne for 12 months. The airline will pay $600 per metric tonne regardless of any fluctuation in the price of fuel during this time. If the fuel price goes up, the airline is protected from this rise whilst if there is a drop in fuel price, the airline will be paying more for fuel than it might have done.
The hedging is normally based on purchasing a set quantity of fuel. If the airline stops flying, such as due to the COVID-19 crisis, and doesn’t use the fuel they’ve hedged, the airlines still have to pay for the fuel they hedged even if they don’t use it which can result in financial losses.