Key View
- Japan is strategically addressing its jet fuel supply shortage by enhancing import capabilities and logistics. This is to meet a demand that peaked at 271.4 thousand barrels per day in December 2023.
- Japan’s jet fuel demand is projected to decline by 2.2% annually over the next five years due to decarbonisation efforts and a shift towards cleaner energy alternatives.
- Asia’s jet fuel market faces downward pressure due to regional oversupply and economic uncertainties.
Japan is actively confronting a looming jet fuel supply shortage, catalyzed by diminished outputs from local refineries and increasing travel demands. As international borders have reopened, there’s been a significant surge in air travel, driving up the demand for jet fuel. However, local refineries have been struggling to keep up, primarily due to aging infrastructure and fluctuating crude oil supply prices. These challenges have raised concerns about the country’s ability to support its aviation industry optimally.
In response to this shortage, Japan has embarked on multiple strategies to stabilize the supply. The government is collaborating with domestic and international oil companies to explore alternative fuel sources and improve logistics networks. Additionally, there is a concerted push towards enhancing the efficiency of existing refineries to maximize output. Part of the initiative also involves bolstering crude oil stockpiles as a buffer against future disruptions.
Japan’s efforts also extend toward investing in sustainable aviation fuels (SAF) as a long-term solution. By fostering research and innovation in SAF production, the nation aims to reduce its dependency on traditional jet fuel. These proactive measures underscore Japan’s commitment to maintaining robust and sustainable aviation operations, ensuring that the industry can endure and thrive despite current challenges.
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