Australia's jet fuel sales fell to their lowest level for more than a decade in March as airlines started cutting services because of the Covid-19 pandemic.
Total jet fuel sales dropped to 114,000 b/d in March from 160,000 b/d a year earlier and were down from 148,000 b/d in the previous month. This was the lowest daily average for any month since the Australian Petroleum Statistics data was collated and published in July 2010.
The sharpest fall in sales was to supply international flights from Australia. Jet fuel sales in this category dropped to 67,000 b/d in March from 101,000 b/d a year earlier and from 92,000 b/d in February, as passenger numbers fell. It is unlikely that international flights will return to Australia in large numbers for several months, with strict quarantine procedures in place for all passengers entering the country.
Sales for domestic flights were also down, but have much further to fall following the closure of several state borders in late March to all but essential workers and the move by Virgin Australia to call in the administrators in April, which left Qantas and Regional Express (Rex) as the only domestic flight providers.
Virgin has continued some flights in administration and, together with Qantas, agreed in mid-April to maintain flights between state and territory capitals, albeit at much lower levels than normal. Lockdown measures are now easing in Australia, but inter-state travel is still restricted including to the major destinations of Queensland and Western Australia.
Australia's jet fuel imports increased to 91,000 b/d in March from an eight-month low of 84,000 b/d in February and March 2019. The increase shows the lag between imports and demand, and was reflected in a rise in Australian aviation fuel stocks to 79,000 bl from 64,000 bl at the end of February and 71,000 bl at the end of March 2019. Stocks were as high as 85,000 bl in June last year and as low as 43,000 bl in August 2017.
Australia's four refineries produced 47,000 b/d of jet fuel in March, down from 62,000 b/d in January and 72,000 b/d in March 2019.
