Switzerland authorises jet fuel reserve release to avert shortage

Switzerland will release up to 30 million litres of jet fuel from its compulsory reserves over the next two weeks to prevent a supply shortage at Zurich Airport, SRF reported. The decision was made by the federal delegate for national economic supply.

The release represents 6.5 percent of the country’s stored aviation fuel. Without it, logistical problems on the Rhine and in rail freight traffic could leave Switzerland’s largest airport short of fuel, according to the Federal Office for National Economic Supply.

Delays and complete disruptions to international rail freight in Germany have slowed fuel deliveries. Rail transport is also under pressure because low water levels on the Rhine have reduced the capacity of cargo ships or stopped some from operating. Replacement shipments for various goods have shifted to an already heavily used rail network.

SRF business editor Dario Pelosi said the wider fuel shortage was linked to wars in the Middle East and Ukraine. He said global crude supplies were sufficient despite attacks in the Strait of Hormuz, but refining capacity was constrained: refineries in the Gulf were not yet operating at full capacity, while Ukrainian attacks may have affected around half of Russia’s refining capacity. Russia is a major supplier of diesel and jet fuel, Pelosi said. The International Energy Agency has proposed that member countries release some reserves to help prevent further shortages.

Supplies of petrol, diesel and heating oil have also worsened compared with the previous week, but the federal government says nationwide supply remains assured. Switzerland’s compulsory stock system requires companies to hold specified quantities of essential goods. The reserves remain privately owned and can be used when market supply cannot meet demand.