China, the biggest source of aviation fuel for Australia, has told its refiners to stop exporting jet fuel, putting at risk cargoes that had not cleared customs by March 11 and raising the prospect of shortages within weeks.
According to market data provider Argus, Chinese officials have instructed refineries not to load shipments that were still awaiting customs clearance as of that date, effectively cancelling at least two upcoming jet fuel cargoes and tightening supply for key export markets including Australia.
“Officials in China have instructed refineries not to load cargoes that had not cleared customs by March 11,” said Argus Asia-Pacific head of oil pricing Aldric Chew, citing emails sent to traders about the new curbs on exports.
The latest move goes beyond earlier guidance to suspend new refined fuel export contracts by confirming that already-booked jet fuel shipments are being postponed or scrapped, a shift that directly affects aviation rather than just gasoline and diesel flows.
The decision is aimed at shoring up domestic energy security amid turmoil in global oil markets linked to the worsening Middle East conflict, which has disrupted supplies through the Strait of Hormuz and driven crude prices higher.
For Australia, which relies on China for roughly 28 per cent of its imported jet fuel, the clampdown means airlines and airports will need to scramble for alternative cargoes from other Asian producers or pay up in the spot market to avoid disruptions.
The escalation from a broad March halt on refined fuel exports to explicit cancellation of pending jet fuel cargoes underscores growing supply risks for aviation, with traders warning that if the restrictions persist beyond this month, regional shortages could emerge quickly as inventories are drawn down.