Australia Faces Jet Fuel Crisis Amid China Ban

Australia's vulnerability to liquid fuel shortages has intensified following reports that China has instructed its oil refiners to halt all fuel exports. This move casts doubt on essential shipments to Australia, further complicated by global conflicts that disrupt oil supplies. Asian refineries, including those in China, are receiving significantly less oil due to these tensions, forcing them to reassess their own strategic fuel needs. Australia, as a net importer, relies heavily on these refineries, particularly for jet fuel.

Experts have long warned about Australia's susceptibility to jet fuel disruptions, with some airports having no domestic refinery capacity and being entirely dependent on imports. Australia currently imports approximately 32% of its jet fuel from China. If these exports cease, Australia must seek supplies from other nations, which are also affected by Middle Eastern conflicts. This could lead to further export restrictions.

In response to potential supply cuts, Australia would need to rely on its strategic jet fuel stockpile. As of mid-March 2026, this reserve amounts to approximately 29 to 32 days' worth, or 802 million litres. However, Australia has not met the International Energy Agency's 90-day stockpiling obligation. The nation's fuel supply chain is designed for continuous deliveries rather than extensive storage, meaning airports could deplete reserves within weeks if new supplies do not arrive, potentially leading to flight cancellations and rationing.