Vietnam warns airlines of possible flight reductions amid jet fuel shortages

It is a consequence of China and Thailand restricting jet fuel exports due to the ongoing Iran conflict, raising the risk of shortages.

The country relies on imports for over two-thirds of its jet fuel, with China and Thailand supplying roughly 60% of that demand, documents from Vietnam’s aviation regulator and fuel importers reviewed by Reuters show. The documents also indicated that supplies from Singapore have fallen.

“There are risks of jet fuel shortages for Vietnamese airlines from early April onward,” the Civil Aviation Authority of Vietnam stated in a March 9 report submitted to the Ministry of Transport.

The regulator recommended that airlines reassess their operational plans, particularly on domestic routes, and instructed airports to prepare additional parking capacity for carriers “in case they need to reduce operations due to fuel constraints.”

Major fuel importers Petrolimex and Skypec told the regulator they could only ensure jet fuel availability through March, warning that April shipments may not be fulfilled. Skypec suggested limiting air travel to essential domestic routes if the regional fuel restrictions persist, Reuters reported.

The warnings followed China’s request to its refiners earlier this month not to commit to new exports, ahead of a full ban on refined fuel shipments from March 11. Thailand banned fuel exports to all countries except Myanmar and Laos on March 6.

Vietnamese authorities have sought diplomatic solutions. Vietnam, the third-largest buyer of Chinese aviation kerosene last year after Australia and Japan, raised the issue with both China and Thailand.

Foreign Minister Le Hoai Trung met with Chinese counterpart Wang Yi in Hanoi, calling for close coordination “to ensure energy security,” the Vietnamese government reported. State media also said Prime Minister Pham Minh Chinh requested Thai support to address the shortage during a meeting with the Thai ambassador. Reuters noted that neither China nor Thailand mentioned energy security in their official statements.

The aviation regulator highlighted that finding new suppliers is challenging, as domestic refineries are prioritizing other oil products, limiting jet fuel production. Even if supplies stabilize, high fuel prices threaten route profitability.

Sun PhuQuoc Airways told the regulator it may adjust flight schedules over the next one to three months due to volatile fuel prices. Petrolimex and Skypec also warned that rising jet fuel costs are straining credit lines and urged banks for more flexible financing until market conditions improve.