Two of Australia’s largest souces of jet fuel could be cut off as South Korea and China eye restrictions | Transport

South Korean airlines have asked their government to help divert jet fuel exports to the domestic market, threatening half of Australia’s critical fuel imports after Chinese authorities flagged export restrictions earlier this month.

Amid deepening concerns across Asia about the impact of escalating conflict in the Middle East, an official at South Korea’s transport ministry told the Guardian that “some domestic carriers” had asked authorities to divert jet fuel intended for export back to the domestic market due to supply concerns.

Any move to restrict exports would hit import-dependent countries particularly hard. Australia, for example, sources roughly a quarter of its refined fuel imports from South Korea; This includes 18% of our imports. total jet fuel imports.

While China, which supplies a third of Australia’s jet fuel, has already moved to restrict fuel exports, Energy Minister Chris Bowen said late last week that China’s jet fuel supplies were secured by late April or early May.

Australia relies on foreign jet fuel for about 80% of the approximately 10 billion liters burned in a typical year, according to the Australian Petroleum Institute, suggesting 4 billion liters of Chinese and South Korean fuel are currently under some suspicion. South Korea refines imported Middle Eastern crude oil into petroleum products for export, making it one of the main fuel suppliers to the Asia-Pacific.

Restricted international fuel supplies will deal a further blow to Australia’s aviation industry and passengers; Qantas had already increased prices on many airlines to offset rising costs.

South Korea’s transportation ministry is trying to forward the request to the Ministry of Trade, Industry and Resources, which oversees fuel export policy. However, an official from the Ministry of Industry said that there was no such request and they are not considering export restrictions at the moment.

The request comes as Korean airlines face increasing pressure from rising fuel costs and tightening supply conditions across the region. Vietnamese reported Jet fuel prices at local airports will double or triple, carriers said. Many affordable airlines dozens of flights were canceled to popular destinations.

Japan It was also reported The Philippines declared a national energy emergency, with President Ferdinand Marcos Jr. warning to ground planes. “it was a distinct possibility”.

Korean low-cost carrier Eastar Jet plans to cancel 50 flights to Vietnam between early May and the end of the month; Air Busan and Aero K have already reduced their international services starting in April. Air Premia, a hybrid carrier, is suspending 10 flights on U.S. routes in May.

Asiana Airlines announced emergency management measures It became the second Korean airline to implement crisis measures after T’way Air on Wednesday.

The airlines requesting to reroute jet fuel were not identified. Korean Air declined to say whether it had made any requests to the government and referred questions to the transport ministry.

Jeju Air, South Korea’s largest low-cost carrier, did not respond to related questions but said it was responding to high fuel prices through a “warehouse” stocking strategy and efficiency measures, including the introduction of Boeing 737 MAX planes that use about 20% less fuel than older models.

The South Korean government has Oil prices were limited and the fact that gasoline, diesel and kerosene exports have been limited since March 13, following the US-Israeli attack on Iran. Naphtha export controls It came into force on Friday.

Jet fuel has been excluded from these measures so far, but South Korea’s role is to: world’s largest jet fuel exporter making any restrictions particularly sensitive to established commercial relations.

South Korea imports almost all of its crude oil. about 70% is transit Before the Strait of Hormuz was closed in early March.

The government has implemented comprehensive energy saving measures, including mandatory energy saving measures. vehicle use restrictions for public sector employees. He did not say whether he would declare a national energy emergency, which would trigger additional crisis measures.

President Lee Jae Myung visited a strategic oil reserve facility on Thursday as part of the government’s response to the fuel crisis.