F1 Holds Crisis Meeting Over Soaring Sustainable Fuel Costs for 2026

Why it matters

Formula 1 teams face a projected 300% surge in fuel costs for 2026, potentially hitting $12 million annually per team. This dramatic escalation, driven by the shift to fully sustainable fuels, has prompted a crucial crisis meeting with suppliers.

The Big Picture

Early projections for sustainable fuel costs (from $22-$33/litre to $170-$225/litre) have been far exceeded, with one team boss suggesting over $300/litre. Mercedes boss Toto Wolff highlighted the unexpected cost increase due to the stringent "green" supply chain requirements, calling for "tweaks" to make it financially sustainable.

The Details

• Annual fuel bills are set to jump from $3-4 million to $10-12 million from 2026.
• While these new costs will be outside the cost cap, teams must still secure additional funding from wider budgets or sponsorships.
• Following F1 Commission discussions, the FIA has called a meeting with fuel suppliers for the week after the Italian Grand Prix to address cost reduction.

What's Next

• No immediate changes are possible for 2026; teams will have to absorb the increased costs for at least one year.
• The primary focus of the upcoming meeting will be to find solutions for 2027 onwards.
• Ideas include standardizing some of the more expensive fuel elements, allowing suppliers to innovate in other, less costly areas.
• F1 believes that global adoption of sustainable fuels, pioneered by the sport, will eventually drive down costs, mirroring the evolution of other advanced technologies. FIA's Nikolas Tombazis and F1's Liam Parker expressed confidence in this long-term trend, emphasizing the importance of policy direction for mass-market investment.