Understanding TIER 1 Title Holder Pricing for JET A-1 EN590 and D6 Fuels

Fuel pricing plays a critical role in industries such as aviation, transportation, and energy production. For businesses and professionals dealing with fuels like JET A-1, EN590, and D6, understanding the pricing structure is essential for budgeting, procurement, and operational efficiency. This post breaks down the Tier 1 Title Holder pricing for these fuels, explaining what the numbers mean and how they impact your fuel costs.

JET A-1 fuel storage tank at a refinery

What is Tier 1 Title Holder Pricing?

Tier 1 Title Holder pricing refers to the base or benchmark prices set for fuel products that Tier 1 holders—usually major suppliers or distributors—use as a reference point for transactions. These prices often reflect market conditions, crude oil prices, refining costs, and regional supply-demand dynamics.

For fuels like JET A-1, EN590, and D6, Tier 1 pricing provides a transparent and standardized way to determine costs. Buyers and sellers rely on these prices to negotiate contracts and manage risk.

Breakdown of Pricing for JET A-1, EN590, and D6

Here is a look at the current Tier 1 Title Holder pricing for these fuels:

• JET A-1: $88 per unit

• EN590: Platt’s assessment less 60 cents

• D6: Minus 0.11 cents per unit

  
  

JET A-1 Pricing Explained

JET A-1 is a kerosene-based aviation fuel widely used in commercial aircraft. The price of $88 represents a fixed dollar amount per unit (usually per barrel or gallon depending on the market). This price reflects the cost of crude oil, refining, transportation, and taxes.

For example, if an airline purchases 10,000 gallons of JET A-1 at $88 per unit, the total cost before taxes and fees would be $880,000. This pricing helps airlines forecast fuel expenses and adjust ticket prices accordingly.

EN590 Pricing Explained

EN590 is a European standard diesel fuel used in road vehicles. Its pricing is often linked to Platt’s assessments, a widely recognized benchmark for fuel prices. The term "Platt less 60" means the price is 60 cents below the Platt’s assessed price.

If Platt’s price for EN590 is $1.50 per liter, the Tier 1 price would be $0.90 per liter ($1.50 - $0.60). This discount reflects market conditions, supplier agreements, or regional factors.

D6 Pricing Explained

D6 refers to a type of fuel oil used primarily in marine and industrial applications. The pricing "minus 0.11 cents" indicates a small deduction from a base price or benchmark.

For instance, if the base price is $2.00 per gallon, the Tier 1 price would be $1.9989 per gallon ($2.00 - $0.0011). Although the deduction seems minor, it can add up significantly over large volumes.

Fuel tanker trucks at a distribution terminal

Why These Pricing Structures Matter

Understanding these pricing formats helps buyers and sellers in several ways:

• Budgeting: Knowing exact prices or how they relate to benchmarks allows companies to plan fuel expenses accurately.

• Negotiation: Buyers can negotiate better deals by understanding how prices compare to market benchmarks.

• Risk Management: Linking prices to benchmarks like Platt’s reduces uncertainty and exposure to volatile markets.

• Transparency: Clear pricing formulas build trust between suppliers and customers.

  
  

For example, a logistics company using EN590 diesel can monitor Platt’s prices daily and anticipate how their fuel costs will change, adjusting routes or delivery schedules accordingly.

Factors Influencing Tier 1 Fuel Prices

Several elements affect the Tier 1 pricing for JET A-1, EN590, and D6 fuels:

• Crude Oil Prices: The primary driver of fuel costs. When crude oil prices rise, fuel prices generally follow.

• Refining Costs: Processing crude oil into usable fuels involves costs that vary by refinery efficiency and technology.

• Supply and Demand: Seasonal demand, geopolitical events, and natural disasters can impact availability and prices.

• Transportation and Storage: Costs to move and store fuel add to the final price.

• Regulatory Policies: Taxes, environmental regulations, and subsidies influence pricing.

  
  

For instance, during winter months, demand for heating oil (similar to D6) may increase, pushing prices higher. Conversely, a refinery outage can reduce supply and cause price spikes.

Fuel gauge on an industrial fuel pump

Practical Tips for Managing Fuel Costs Using Tier 1 Pricing

• Monitor Benchmarks Regularly: Keep an eye on Platt’s assessments and crude oil prices to anticipate price changes.

• Negotiate Contracts Based on Benchmarks: Use Tier 1 pricing as a reference to secure fair deals.

• Consider Volume Discounts: Larger purchases may qualify for better pricing beyond Tier 1 rates.

• Plan Fuel Usage Strategically: Adjust operations to take advantage of lower price periods.

• Use Hedging Strategies: Some companies use financial instruments to lock in prices and reduce risk.

  
  

For example, an airline might purchase JET A-1 in bulk when prices dip below $85 to save costs over time.

Summary