China has ordered its oil refiners to halt all fuel exports, with at least two jet fuel cargoes bound for Australia already affected in what experts are calling a "deeply worrying" development for the nation's aviation sector.
The move comes as Australia imported approximately 32% of its jet fuel from China in 2025, according to analysis from The Conversation. With no domestic refinery capacity at major airports like Sydney, the nation now faces a strategic vulnerability that could ground flights if the export ban continues.
Mate, there's a whole continent down here completely reliant on fuel imports. And right now, our biggest supplier just turned off the tap.
Sydney Airport's CEO confirmed the facility is "completely reliant on jet fuel imports" with zero refinery capacity, making any export restrictions "extremely concerning." Australia currently holds a strategic jet fuel stockpile of just 29-32 days—approximately 802 million litres—falling well short of the International Energy Agency's required 90-day stockpile obligation.
The Chinese decision follows reduced oil supplies due to the Iran conflict and attacks on tankers in the Strait of Hormuz. Asia receives up to 90% of its oil from the Middle East, creating a cascading effect as Australia now must compete with other nations for alternative suppliers in South Korea, Taiwan, Singapore, Malaysia, and India—all facing the same Middle East supply pressures.
"Depending upon how long this continues, it is likely to cause significant disruptions to flight scheduling," the analysis warned. Qantas has already increased international fares, though flights remain operational as of mid-March. Air New Zealand has cancelled 1,100 flights due to fuel pricing and supply issues.
The crisis exposes Australia's strategic weakness in energy security. After years of shuttering domestic refineries in favour of cheaper imports, the nation now faces the consequences of that dependence. With great power competition heating up in the Pacific, fuel security isn't just an economic issue—it's a national security one.
Online commentators expressed alarm at the revelation. "We closed all our refineries because imports were cheaper. Now we're at the mercy of whoever will sell to us," one user wrote. Another added: "This is what happens when you don't maintain strategic industries. We've outsourced our vulnerability."
