The Oil Drum

Though it is true that Germans had shortages of fuel near the end due to the success of British and U.S. bombing campaigns, the binding constraint (i.e. most severe bottleneck) on the Luftwaffe at the end was pilots. Almost all their good pilots had been captured or killed, and at the end the Generals were flying along with seventeen-year-old kids with a hardly any skills compared to the expert pilots the Germans had in the early 1940s. The Luftwaffe had more Me262s than pilots skilled enough to fly them, and because they could stay airborne for only about forty-five minutes they did not guzzle much kerosene. The jets were shot down in large numbers by slower propeller aircraft, because the experienced British and U.S. pilots (who scornfully called the planes "blowjobs") were much better than all but a very few German pilots at the end.

Interestingly, the Germans had plenty of ethanol and liquid oxygen to fuel the V-2s until very close to the end of the war.