Jet fuel prices near wartime highs

WASHINGTON

Jet fuel prices in parts of the United States have climbed close to their highest levels since the war with Iran began, renewing concerns over airline costs and ticket prices.

Prices on the Gulf Coast, the U.S. benchmark market, stood at $4.55 a gallon on Sept. 17, just over 20 cents below their wartime peak.

In New York, jet fuel cost $4.75 a gallon.

U.S. production fell to its lowest level since early March in the week to Sept. 11, the report said. Supplies remain high but are moving closer to normal seasonal levels, leaving scope for further price increases.

Broader fuel supply disruptions, particularly in diesel, are adding to the pressure. Diesel and jet fuel are both middle distillates, with closely linked prices. Refiners can increase output of one at the expense of the other.

The fuel price surge earlier this year pushed up airfares and worsened airlines’ financial difficulties. Spirit Airlines halted operations in May, citing sustained fuel-cost increases and its inability to secure the additional funding needed to continue flying.