Australia faces potential disruption to its jet fuel supply as South Korea and China, two of its largest sources, consider export restrictions. South Korea's transport ministry confirmed that domestic airlines have requested authorities to redirect export-bound jet fuel to the local market amid a supply crunch. China has already flagged export restrictions, though Australian Energy Minister Chris Bowen said Chinese supplies were assured until late April or early May.
Australia imports around 80% of its jet fuel, with China and South Korea supplying a third and 18% respectively. Any curtailment would hit the aviation industry hard, with Qantas already raising prices due to soaring costs. Other Asian nations are also tightening supply: Vietnam reported that jet fuel prices could double or triple, Japan has notified airlines of possible refuelling restrictions, and the Philippines declared a national energy emergency.
South Korean carriers, including Eastar Jet, Air Busan, and Air Premia, have cancelled or reduced flights to popular destinations. Asiana Airlines declared emergency management measures, following T'way Air. The South Korean government has already capped petroleum prices and limited exports of gasoline, diesel, and kerosene since 13 March, but jet fuel has so far been excluded. The transport ministry is relaying the request to the trade ministry, but an industry ministry official said no such request had been received and no export restrictions were being considered.
South Korea imports virtually all its crude oil, with 70% transiting the Strait of Hormuz. The government has imposed energy conservation measures and the president visited a strategic oil reserve facility. The situation remains fluid, with potential knock-on effects for Australian travellers and airlines.
