Impact of the Iran War: Reiche warns against alarmism regarding kerosene

The Federal Ministry of Economics is taking the concerns of the aviation industry seriously, said Reiche. Air transport is essential for Germany as a business location in order to ensure international connectivity and time-critical goods transport.

Air cargo companies have already called for priority supply should there be shortages. “We may end up in a situation where kerosene has to be allocated in Germany, as is already the case in Italy,” said Claus Wagner, chairman of the Association of Air Cargo Handlers in Germany (Vacad), to “Welt”. Christopher Stoller, President of the Aircargo Club Germany (ACD), said that if kerosene becomes scarce, priority supply to air freight logistics is economically imperative. “The air cargo sector acts as a critical backbone of global supply chains and industrial value creation.”

Reiche emphasized that there is a close and constant exchange with the players in the industry in order to monitor possible effects on aviation in Germany and to quickly take targeted countermeasures if they become necessary. “My office, together with the Federal Ministry of Transport, has invited all stakeholders – suppliers, airports, airlines and associations – to a discussion on Monday.”

Statements by Klingbeil

Federal Finance Minister Lars Klingbeil (SPD) had previously spoken out and called for measures to be taken against a possible kerosene shortage predicted by the International Energy Agency. “We have to take the warnings of kerosene shortages very seriously,” the SPD leader told “Spiegel”. “It is clear to me: We should not only tackle the price problem, but also have to keep an eye on security of supply at all times.”

There had already been arguments between Klingbeil and Reiche. Reiche had sharply criticized Klingbeil’s proposals to provide relief for consumers in view of the high fuel prices. Klingbeil, in turn, had warned Reiche against slowing down the energy transition.

National Reserve

Reiche said: “I don’t believe in discussing every scenario publicly.” It is important to act carefully and thoughtfully. According to the minister, as part of the participation in the approvals by the International Energy Agency, the federal government decided to initially offer the quantities in several batches until the end of April in order to be able to react flexibly to future market developments. In addition to crude oil and diesel, 50,000 tons of jet fuel have already been released.

The petroleum storage association has currently stored another 1.1 million tons of kerosene. If there is a threat of a physical supply shortage in Germany, one could react with the national reserve, said Reiche. “It should also be taken into account that Germany, with its own refinery industry, which also produces kerosene, is significantly better positioned than some other countries.”

Scarcity warnings

The International Energy Agency warned on Friday that several European countries could face incipient shortages of jet fuel in the next six weeks. Reiche had said that kerosene was also produced in German refineries. You are not only dependent on imports.

According to the BDL air transport association, the slow supply of kerosene could soon lead to noticeable cuts in flight offerings. “The summer travel season is imminent, the tourism ecosystem is dependent on air traffic during the peak travel and business season for incoming and outgoing tourists,” said BDL Managing Director Joachim Lang. Whether and when the supply situation worsens depends largely on the duration of the Iran war.

The kerosene crisis first became apparent at Asian airports, which stopped accepting additional flights weeks ago. Reiche said: “If a plane leaves for Asia, for example, you have to be sure that there are refueling options there.”

Energy supply

With regard to the Iran war, Reiche said that the situation in the Middle East had developed into a “global moment of shock” for the world economy. “Despite massive geopolitical tensions and price increases for oil, gas, fuels and other products, Germany’s physical energy supply is currently secure.” The federal government is monitoring developments closely and acting in a targeted manner.

The black-red coalition has announced temporary tax cuts for drivers due to high fuel prices. Reiche will present the federal government’s spring forecast on Wednesday. It is expected that the federal government will significantly reduce growth expectations. In January, she had expected gross domestic product to grow by 1.0 percent this year. Leading research institutes had already revised their forecast to 0.6 percent.