Japan is gearing up to address a surge in jet fuel demand from flights amidst a tourism boom by increasing production and imports, as outlined in a government plan presented recently. The shortage of jet fuel has been a setback for commercial flights, stalling the growth of international flight capacity and new routes.
Following the resumption of visa-free travel and a weakened yen attracting overseas visitors, Japan’s tourism industry has seen a revival. The draft plan, presented by industry and transport ministries, proposes short-term measures like assessing fuel demand at airports and ramping up production and imports. Additionally, the plan aims to strengthen transport systems by maximizing truck and ship capacity.
Medium to long-term strategies include expanding tank capacity at refineries and airports, increasing truck fleets, enhancing cargo handling equipment, and adapting to the rising jet fuel demand targeted for 2030. Japanese refiners, adjusting to declining domestic demand, are now focusing on meeting the anticipated growth in jet fuel consumption.
As Japan anticipates welcoming 60 million foreign tourists by 2030, adopting a forward-looking approach to fuel supply becomes crucial for sustaining the tourism industry’s growth.
© Thomson Reuters 2024.