Australia secures more jet fuel from China

The Australian government said on May 19 that it had secured three shipments of jet fuel from China to boost fuel stocks amid disruptions caused by the Iran war, reports different international media outlets.

The Aussie government said more than 600,000 barrels, or about 100 million litres, of jet fuel would arrive from early June, following discussions between Prime Minister Anthony Albanese and Chinese Premier Li Qiang.

The extra jet fuel represents about 1 per cent of Australia’s annual consumption. Foreign Minister Penny Wong said Australia was working with countries in its region to respond to the shock to the global economy and ensure the continued flow of essential fuels.

The agreement follows growing pressure on Asia-Pacific economies due to soaring fuel prices, largely driven by the ongoing Middle East conflict and the closure of the strategic Strait of Hormuz. For Australia, which depends heavily on-air travel for tourism and freight exports, these price hikes have posed a serious challenge to key economic sectors.

China already supplied about one-third of Australia’s aviation fuel last year. Australian officials have pointed out to Beijing that stable jet fuel supplies are crucial for supporting the country’s resources sector, which includes major exports like iron ore, coal, and liquefied natural gas (LNG) to China.

Australia recently announced it would reserve 20 percent of its gas exports for the local market. This move, combined with the jet fuel imports from China, reflects Canberra’s multi-pronged strategy to ensure energy resilience.