Platts proposes splitting Middle East and Africa jet index, amending Global Jet Fuel Index

Platts, part of S&P Global Commodity Insights, is proposing to amend the composition of its Middle East and Africa jet fuel index to reflect only Middle East assessments, and rename it to Platts Middle East jet fuel index. At the same time, Platts is proposing to launch a new Africa jet fuel index, effective Jan. 2, 2025.

The proposal follows market requests for Platts to publish an independent jet fuel index for Africa, amid the emergence of new trade flows and domestic African refining capacity which has resulted in a significant variance in value of jet fuel in Africa relative to the Middle East region.

Changes to regional indexes

The Middle East and Africa jet fuel index currently comprises the value of jet fuel in the Middle East (55%), Mediterranean (25%), West Africa (15%) and South Africa (5%). From Jan. 2, 2025, Platts is proposing that the Mediterranean, West Africa and South Africa will account for 30%, 35% and 35% of the new Africa jet fuel index, respectively -- reflecting jet fuel demand primarily from uplift data and trading volume.

The value of jet fuel in the Mediterranean, West Africa and South Africa will continue to be underpinned by the Platts Jet FOB Med Cargo assessment [AAIDL00], Platts Jet FOB STS Lome assessment [AJWAA00] and the Platts Jet Kero CFR South Africa Cargo assessment [AAQWT00], respectively.

Meanwhile, Platts is proposing for Platts Jet Kero FOB Arab Gulf Cargo assessment [PJAAA00] and Jet Kero FOB Fujairah Cargo [AFUJF00] assessment to each account for 50% of the renamed Middle East jet fuel index.

Current composition of Platts Middle East and Africa index:

Proposed changes from Jan. 2, 2025:

In addition to outright values in US cents/gal, $/barrel and $/mt, Platts jet fuel indexes are also published as relative values, which express the value of an index as a percentage of its base value at the time it was launched. For the proposed Africa jet fuel index, Platts would determine this base value by calculating the average value of the same index during 2024.

Changes to Global Jet Fuel Index

Following the proposed changes, the Platts Global Jet Fuel Index would be formed of six regional indexes from the current five, namely: Asia & Oceania, Middle East, Europe & CIS, Africa, North America and Latin America, effective Jan 2, 2025. The Platts Global Jet Fuel Index is a weighted average of Platts jet fuel assessments from major global trading, supply and demand centers. The weightings in the index represent a broad view of proportional demand for jet fuel around the world. Details of the methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/World_Jet_Indexes.pdf.

The proposed changes would not impact the weighting of the regional indexes for Asia & Oceania, Europe & CIS, North America and Latin America in the calculation of the Global Jet Fuel Index.

Composition of regional indexes and weightings:

These assessments appear on Platts Global Alert page 115, in Asia Pacific Arab Gulf Marketscan, European Marketscan, US Marketscan and in the Platts price database under the codes above.

Please send any feedback, comments or questions to Europe_products@spglobal.com and pricegroup@spglobal.com by Nov. 29, 2024.

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