Australia’s June local jet fuel demand hits 3-year high

Australia's domestic jet fuel consumption in June rose to its highest monthly average since July 2019, reflecting that domestic air travel has almost recovered from the impact of the Covid-19 pandemic.

The June domestic demand also equated to around 90pc of the average consumption for internal flights during the five years to the 2017-18 fiscal year to 30 June, latest Australian Petroleum Statistics (APS) data showed.

Jet fuel demand for international flights departing Australian airports was also up strongly from a year ago, but remained less than 40pc of pre-Covid-19 demand levels.

Australia's total jet fuel demand averaged 112,800 b/d in June, up by more than 93pc from 58,000 b/d in June 2021 and almost 5pc above the average of 107,600 b/d in May . It also marked the highest monthly average since air travel restrictions were first imposed in March 2020 when demand averaged 114,000 b/d.

June also marked the third straight month of total demand averaging above 100,000 b/d since pre-Covid-19 times. The increase in demand towards the end of 2021-22 underpinned a 33pc year-on-year rise in total average demand to 77,800 b/d for the fiscal year, but this was still well below the 2019-20 average of 126,000 b/d.

Domestic jet fuel demand accounted for the largest share of total demand, averaging 61,500 b/d in June. This was up by 89pc from 32,400 b/d in June 2021 and by almost 4pc from 59,200 b/d in May this year and the highest daily average for a monthly period since 64,600 b/d in July 2019.

Domestic jet fuel consumption above 60,000 b/d reflects that consumption is close to historic averages. Consumption averaged around 66,500 b/d between 2012-13 and 2017-18 and fell below 60,000 b/d in 2018-19.

Jet fuel consumption for international flights departing Australia has further to recover. The June average of 51,300 b/d was the largest monthly average since 67,000 b/d in March 2020 but was around half of the average of 102,800 b/d in 2018-19.

Jet fuel distribution firms are anticipating a further recovery in Australian jet fuel demand, with imports of 122,000 b/d in June marking the second highest monthly import total after the record 126,500 b/d in March 2017.

By Kevin Morrison

Australian jet fuel sales for June unit (b/d) Period Domestic International Total Refinery output Jet fuel imports June &#39;22 61,509 51,321 112,830 10,189 122,159 May &#39;22 59,262 48,387 107,649 10,388 75,431 June &#39;21 32,472 25,840 58,312 14,578 89,937 2021-22 FY (average) 41,559 36,236 77,797 10,663 65,169 2020-21 FY (average) 32,472 25,840 58,312 14,578 46,374 2020-21 vs 2021-22 % &#177; 27.98 40.23 33.41 -26.86 40.53 YoY % &#177; 89.42 98.61 93.49 -30.11 35.83 M % &#177; 3.79 6.06 4.81 -1.92 61.95 Source: APS

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