air-cargo

US Cargo Carriers Seek Jet Fuel Tax Suspension Amid Middle East Supply Crisis

The National Air Carrier Association has petitioned the Trump administration to temporarily suspend federal excise taxes on commercial aviation fuel. Geopolitical tensions have driven sharp price increases across the industry.

Jet fuel prices have surged 80.5% year-over-year to $163 per barrel globally, with North American prices reaching $164 per barrel, following closure of the Strait of Hormuz after the US-Iran conflict began in late February. The waterway handles approximately 20% of global oil transit.

NACA President George Novak warned that elevated fuel costs will increase prices for goods transported by air, including medical supplies, electronics, and perishables. He argued the tax waiver would provide immediate operational relief to carriers, stabilize supply chains, and limit inflationary pressure during geopolitical uncertainty.

Prices have declined 14% from last month's highs, when costs briefly exceeded $200 per barrel.