Government secures 100m litres of jet fuel to shore up supply

“My Government is working day and night, here and abroad, to shield Australians from the worst of the impacts of a war on the other side of the world,” said Prime Minister Anthony Albanese.

“We have now secured more than 450 million litres of additional diesel and 100 million litres of additional jet fuel to keep Australia moving.

“In the face of global instability, we are leaving no stone unturned as we work to keep Australia moving, working and flying.”

According to Transport Minister Catherine King, the move will continue to bolster supplies, with Australia currently having around 30 days of jet fuel on hand, or 489 million litres.

“The Government has now secured jet fuel through the Strategic Reserve for the first time since the conflict began, ensuring our aviation sector has the certainty it needs to keep passengers and freight moving,” she said.

“This is a practical step towards strengthening Australia’s jet fuel supply. This will help support Australian airlines and keeping our nation connected.”

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The announcement comes as Foreign Minister Penny Wong has been travelling to Japan, South Korea and China to secure more fuel supplies.

“Australia will continue working with international partners to help secure the supplies we need, including diesel, petrol and fertiliser, and ensure Australia is prioritised as a reliable energy partner,” Minister Wong said in a statement.

“The Republic of Korea is one of Australia’s most important sources of refined fuels, including diesel, automotive gasoline and aviation fuel.

“Australia and Japan are special strategic partners and close friends, with a relationship built on trust, aligned values and mutual interests. Together, we support a free and open Indo-Pacific that is inclusive and resilient.

“The Australian government remains committed to a stable and constructive relationship with China, which is in the interests of both our countries.

“Australia and China have a Comprehensive Strategic Partnership and benefit from deep economic ties, with our trade relationship underpinning supply chains, investment and livelihoods in both economies. Dialogue between our countries enables us to progress the full range of our interests and manage our differences.”

Both Qantas and Virgin have increased airfares due to higher fuel costs after Iran effectively closed the Strait of Hormuz, which sees around 20 per cent of global oil traffic. The major carriers have also cut capacity on domestic services.

IATA director-general Willie Walsh said in a statement on March traffic that the price of jet fuel remains a significant concern for airlines, with estimates that it has more than doubled since the conflict began at the end of February.

“Everybody’s watching what’s happening with jet fuel – both supply and pricing. On the supply side, over the next months we could see shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe,” he said.

“The extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices. While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behaviour.”

Australia has two operating refineries – Ampol in Brisbane and Viva Energy in Geelong – with a fire at the Viva plant in April reducing its capacity to produce jet fuel and avgas.