Japan Plans to Increase Jet Fuel Production and Imports to Alleviate Shortage

Japan plans to boost jet fuel production and imports to meet rising demand from flights amid a surge in tourism, according to a draft government plan presented on Tuesday.

This initiative aims to address the recent jet fuel shortage affecting commercial flights, which has impeded the expansion of international flight capacity and the introduction of new routes.

Tourism in Japan rebounded after visa-free travel resumed in late 2022 following strict COVID-19 border controls. The yen's decline to a 38-year low has also increased the country's appeal to overseas visitors.

The draft was presented by the industry and transport ministries to a panel of specialists discussing the fuel shortage issue.

As short-term measures, the draft proposes assessing fuel demand growth at each airport and ensuring sufficient supply by increasing local production and imports. It also includes strengthening transport systems by maximizing the use of lorries and ships.

For medium- and long-term strategies, the draft suggests increasing the number of tanks at refineries and airports, securing more lorries and larger ships, and updating aging cargo handling equipment.

Japanese refiners have been reducing oil processing capacity over the past decade due to falling domestic demand, driven by an aging population, a declining birthrate, and a shift towards more fuel-efficient vehicles.

"Unlike other oil products, we expect jet fuel demand to increase further as the government targets 60 million foreign tourists by 2030, so we have to take a long-term approach," an official at the industry ministry told reporters.

In 2023, just over 25 million visitors arrived in Japan.