Australia’s main airways aren’t going through any “instant” points with gas provide regardless of the Iran battle, the Transport Minister has mentioned.
Chatting with ABC Radio Nationwide, Minister Catherine King mentioned she had “heard reviews” that China had advised its oil refineries to halt exports, however that Qantas and Virgin have been able to deal with not less than any short-term disruptions.
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“I’m talking nearly each day, and my Division every day with the aviation trade, and significantly to Qantas and Virgin. They’re effectively positioned to face up to what is happening globally,” the Minister mentioned.
“In the mean time, they’re telling me there is no such thing as a instant or short-term subject in relation to jet gas provide. After which we clearly have our minimal inventory holding obligations as effectively. So we don’t see any instant subject by way of flights.”
The Minister’s feedback come as Qantas hikes worldwide ticket costs in response to rising gas prices, whereas Air New Zealand is ready to lower greater than 1,000 flights throughout the following couple of months.
“Clearly, the value of jet gas is having some affect on our aviation trade, and we’re watching that pretty carefully, however each of the airways are telling us that they’re okay in the intervening time, and we’ll proceed to watch that,” she mentioned.
In response to Minister King, as of Monday Australia had 29 days of jet gas in its minimal inventory obligation, in addition to 30 days of diesel and 37 days of petrol.
“It’s clear, clearly, the longer that the warfare continues, the better the impacts shall be felt, not simply by us, however clearly the Asia Pacific area total. And we’ll proceed to watch these occasions as they happen,” she mentioned.
“However at this stage, all the ships that have been deliberate to return into Australia, are coming in. The gas provide is holding.”
The potential for gas disruptions has additionally raised the profile of sustainable aviation gas (SAF), with Sydney Airport CEO Scott Charlton telling a bioenergy convention final week that Australia ought to look to speculate extra closely in a sovereign SAF trade.
In response to Charlton, his airport alone accounts for round 40 per cent of Australia’s aviation gas use, or round 9 million litres per day.
“At any given time, we’re usually sitting on round 25 days of gas provide throughout our ecosystem on the airport, our pipelines and native storage. That provides you a way of the size required to maintain plane transferring day by day,” mentioned Charlton.
“The reliability of that 25-day provide relies on worldwide delivery lanes, international refining capability and geopolitical stability.
“And while you take a look at the world as we speak – with battle within the Center East and rising pressure throughout international vitality markets – you begin to see why gas safety issues simply as a lot as emissions.
“Final week in Parliament, the Minister for Local weather Change and Power confirmed that Australia holds simply over a month of liquid gas shares throughout petrol, diesel and jet gas. And this is the reason Sustainable Aviation Gas is so essential on a number of fronts.”
Talking at this week’s 2026 Safe the Future: Inexperienced Power Discussion board in Townsville, enterprise leaders together with Airbus’ chief consultant for Australia, New Zealand and the Pacific, StephenForshaw, have once more referred to as for a home SAF mandate to spur native trade.
“Demand drivers for SAF, accompanying the numerous measures to assist manufacturing introduced by the Authorities final yr, will stimulate native biofuel manufacturing. In flip, this may restore Australia as a fuel-producing nation over coming years again to ranges not seen because the closure of refineries prior to now decade,” mentioned Forshaw.
“We will make gas from biomass we’ve got above the bottom as an alternative of being depending on the extraction of crude oil from under the bottom. Innovation opens a big alternative for Australia to grow to be extra resilient.
“The proper steadiness in coverage settings between provide facet and demand drivers will present the sign wanted for buyers to decide to new native sustainable aviation gas initiatives and assist safeguard Australia’s long-term gas provide. And this advantages our areas, with native jobs, funding and financial improvement.
“We need to use our feedstock right here to provide fuels right here, energy our trade right here and seize the financial and safety advantages right here, moderately than export our uncooked commodities for others to course of.”
Jet gas costs have risen as a lot as 150 per cent because the Center East battle started.
