South Korean airlines have asked the government to redirect export-bound jet fuel to the domestic market, threatening nearly half of Australia's jet fuel imports. The request comes as deepening concerns over the Middle East conflict tighten fuel supplies across Asia.
An official at South Korea's transport ministry confirmed that 'some domestic carriers' had approached authorities to divert jet fuel exports due to supply worries. The ministry is attempting to relay the request to the Ministry of Trade, Industry and Resources, which oversees fuel export policy. However, an industry ministry official said it had not received any such request and was not currently considering export restrictions.
Australia relies on foreign jet fuel for about 80% of its annual consumption of roughly 10 billion litres. South Korea supplies 18% of Australia's jet fuel imports, while China provides a third. China has reportedly moved to restrict fuel exports, although Australia's energy minister said Chinese supplies were assured until late April or early May.
The potential restrictions come as Korean airlines face mounting pressure from surging fuel costs. Vietnam reportedly notified carriers that jet fuel prices would double or triple at local airports. Japan has also warned of possible refuelling restrictions, while the Philippines declared a national energy emergency. Several budget airlines have cancelled flights, and Asiana Airlines declared emergency management measures.
South Korea imports virtually all of its crude oil, with roughly 70% transiting the Strait of Hormuz before its closure in early March. The government has capped petroleum prices and limited exports of gasoline, diesel and kerosene since March 13, but jet fuel has so far been excluded from these measures.
