Australia's jet fuel supply is under threat after South Korean airlines asked their government to redirect exports to the domestic market, following similar moves by China. The developments could cut off nearly half of Australia's imported jet fuel, which accounts for about 80% of the roughly 10 billion litres consumed annually.
South Korea's transport ministry confirmed that "some domestic carriers" had requested authorities to redirect export-bound jet fuel back to the local market amid supply concerns. South Korea supplies about 18% of Australia's jet fuel imports, while China provides roughly a third. Energy minister Chris Bowen said Chinese supplies were assured until late April or early May.
The crisis has already impacted airlines across Asia. Several South Korean carriers, including Eastar Jet, Air Busan, and Aero K, have cancelled or reduced flights to destinations such as Vietnam and the US. Asiana Airlines declared emergency management measures, following T'way Air's earlier implementation of crisis measures. Qantas has also hiked prices to offset soaring costs.
The South Korean government has capped petroleum prices and limited exports of gasoline, diesel, and kerosene since 13 March, but jet fuel has so far been excluded. The industry ministry said it had not received any formal request to restrict jet fuel exports and was not currently considering such measures. However, the transport ministry is attempting to relay the request to the trade ministry.
Other countries in the region are also tightening fuel supplies. Vietnam reportedly notified carriers that jet fuel prices would double or triple at local airports, while Japan warned of possible refuelling restrictions. The Philippines declared a national energy emergency, with President Ferdinand Marcos Jr warning that grounding planes was "a distinct possibility".
South Korea imports virtually all of its crude oil, with about 70% transiting the Strait of Hormuz before its closure in early March. The government has imposed sweeping energy conservation measures, including mandatory vehicle use restrictions for public sector workers, but has not indicated whether it would declare a national energy emergency.
