China halts refinery exports, cuts jet fuel supply to Australia
Australia’s biggest provider of jet fuel has cut exports, leaving the country’s airports with an uncertain future.
China has reportedly ordered refineries to halt exports in a move that could cut critical jet fuel supplies to Australia.
Australia is almost entirely dependent on jet fuel from overseas, with Chinese refineries alone making up 32 per cent of imports in 2025.
While no public announcement has been made, Asia Pacific oil pricing chief at data firm Argus Aldric Chew said on Friday that Chinese authorities told refineries not to load cargoes that had not cleared customs by March 11, the Australian Financial Review reported.
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By continuing you agree to our Terms and Privacy Policy.Mr Chew cited emails from Chinese authorities to a trading firm.
NewsWire understands the Albanese government is mulling a response, with one source saying it was not wholly unexpected while another said it caught the Canberra off-guard.
The Chinese move comes amid murmurs Australia’s other major sources, such as South Korea, Singapore, Malaysia and Japan, could also impose run cuts on their refineries.
NewsWire understands the government is not concerned about March’s deliveries but watching closely what happens in April.
Energy Minister Chris Bowen’s office did not immediately respond to a request for comment.
Meanwhile, opposition energy spokesman Dan Tehan called on Mr Bowen to explain how the government was going to respond.
“Chris Bowen has been asleep at the wheel through this nationally significant event,” he told NewsWire.
“This decision by China has sent a shockwave across the Indo-Pacific.
“He needs to tell Australians what the government’s response will be.”
The latest blow to Australia’s fuel security came a day after Sydney Airport chief executive Scott Charlton warned that Australia was too reliant on overseas supplies.
“(This) means the reliability of that 25-day supply depends on international shipping lanes, global refining capacity and geopolitical stability,” Mr Charlton told a conference.
“And when you look at the world today – with conflict in the Middle East and growing tension across global energy markets – you start to see why fuel security matters just as much as emissions.”
Fuel from North Asia can take up to 25 days to arrive in Australia.
Airports are required to stock at least 27 days’ worth of aviation fuel.
Earlier on Friday, Mr Bowen lowered petrol and diesel stocking obligations for Australian companies.
Under the changes, companies need to stock 2.2bn litres of diesel down from 2.7bn litres, and 700m litres of petrol down from 1bn.
He declared the changes “necessary” amid flow-on effects from the spiralling conflict in the Middle East, which has effectively cut 20 per cent of the world’s oil supply.
Originally published as China halts refinery exports, cuts jet fuel supply to Australia
