Global energy shock sends sustainable aviation fuel prices to record high, exposing supply chain fragility
By
Hillary Remy
Summary
The article examines how the March 2025 global energy shock caused sustainable aviation fuel (SAF) prices in California to spike to an all-time high of $8.85 per gallon, exposing the fragility of the SAF supply chain. It argues that while the aviation industry has promoted SAF as the primary path to decarbonization, the price surge reveals deep vulnerabilities including limited production capacity, feedstock constraints, and dependency on fossil fuel infrastructure. The piece critically assesses whether green aviation can scale sustainably given these economic and logistical challenges.
Source
bskyGlobal energy shock sends sustainable aviation fuel prices to record high, exposing supply chain fragilitymiramarflnews.comKey quotes
· 3 pulledSAF prices in California hit an all-time high of $8.85 per gallon in the week ended March 4, a surge of more than $1.32 in a single week, according to S&P Global Platts.
The aviation industry has spent years making the case that sustainable fuel is the path to decarbonization. In early March, a global energy shock made that case in a way no industry conference ever could, and simultaneously exposed how fragile the supply chain behind that fuel actually is.
The price spike pulled back the curtain on a fundamental tension at the heart of the green aviation movement: the fuel that is supposed to save the industry from its carbon problem is itself vulnerable to the same market forces that make fossil fuels volatile.
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