Australia and Japan face jet fuel supply crunch as China cuts exports | South China Morning Post

VirtualRichDream · 2026-04-01T07:33:33+00:00

China's jet fuel exports have sharply decreased due to the US-Israel war on Iran, impacting countries like Australia and Japan. This decline has led to rising global jet fuel prices and potential fare increases for passengers.

VirtualRichDream

2026-04-01 07:33:33

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China’s exports of jet fuel have declined sharply in recent weeks amid the US-Israel war on Iran, leaving countries including Australia and Japan facing a supply crunch and scrambling to find alternative sellers.

China is Asia-Pacific’s largest jet fuel and kerosene exporter, but shipments from the country fell nearly 40 per cent month on month in March to 204,000 barrels per day, figures from trade data provider Kpler showed.

The cutback is likely to hit hardest in Australia and Japan, which are both heavily reliant on Chinese jet fuel, according to Kpler. Other countries affected include Vietnam, Malaysia, the Philippines, Singapore, South Korea, Canada and the United States.

Global jet fuel prices have roughly doubled since the start of the war, soaring from US$99.40 per barrel during the last week of February to US$195.19 per barrel last week, according to data from market intelligence firm Platts.

The spike is already being felt across the aviation industry. Passengers should expect 8 to 15 per cent higher fares plus larger fuel surcharges, as well as a decrease in flights as budget carriers cut routes, according to Osama Rizvi, a global market and product strategist at market intelligence firm Primary Vision.

Scott Charlton, chief executive of Sydney Airport, warned in early March that there were no guarantees that Australia’s airports would receive aviation fuel the following month, as the country remained overreliant on overseas supplies.

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