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Japanese refiners call for early orders by airlines in the face of jet fuel shortage

Posted to Maritime Reporter on July 23, 2024

As a way to solve the jet fuel shortages at Japanese airports, the head of Japan's petroleum industry demanded on Thursday that international airlines provide flight schedules as well as jet fuel demand predictions a year ahead.

Jet fuel shortages in Japan, due to supply chain bottlenecks in recent months have affected commercial flights. This has led to a reduction in international flight capacity, and the opening of new routes, despite a surge in tourism.

Shunichi Kito (PAJ) president, said at a press conference that the current issue is largely due to the fact that the supply does not keep up with the demand.

He said that domestic airlines do not have a problem with refueling because they give demand forecasts through contracts.

Kito added that domestic airlines would give refiners a one-year advance notice.

Japanese refiners are planning to increase jet fuel imports and production in order to meet the rising demand.

Kito, the president of Japan’s second largest oil refiner Idemitsu Kosan, said that if we needed to import, South Korea was the best option. Singapore and China also are candidates, and talks about imports have begun.

Kito stated that while there is not a shortage of jet-fuel, the supply chain bottlenecks, such as a lack domestic vessels, lorries, and refuelling personnel, are stopping fuel from reaching its destinations.

He said, "We will respond in collaboration with all parties involved."

Kito stated that the government is currently investigating each airport's situation and that refiners have been working to secure fuel in a short term measure. Kito added that medium and long-term solutions will be considered depending on forecasts of future fuel demand.

A spokesperson, without giving any details, said that the fuel shortage at Narita International Airport in Japan, Japan's largest international airport, affected the operations of six airlines on 57 flights as of the end of June.

He said that the operator of Narita Airport had asked traders for the first-time to purchase jet fuel from overseas refineries via international shipping vessels, instead of stopping at Japanese refineries on route.

After strict COVID-19 border checks, visa-free travel was resumed late in 2022. The yen's decline to a low of 38 years increased the appeal of Japan to foreign visitors. (Reporting and editing by Susan Fenton; Yuka Obayashi)

Tags: Asia Marine Services East Asia South-East Asia