Japan plans to increase jet fuel output and imports to satisfy increased flight demand during a tourism boom, according to a draft government plan released on Tuesday. This strategy solves a jet fuel constraint that is preventing commercial planes from expanding to new international routes.
Tourism to Japan increased after visa-free travel resumed in late 2022, following tight COVID-19 border controls, with the yen falling to a 38-year low, adding to the country’s attraction. The proposal, published by the industry and transportation ministries, calls for analysing fuel demand growth at each airport and ensuring enough supply by expanding local production and imports.
The strategy also includes improving transportation systems by utilising the maximum capacity of trucks and ships. Additionally, it recommends increasing the number of tanks at refineries and airports, securing additional trucks and ships, and replacing ageing cargo handling equipment.
Japanese refiners have lowered oil processing capacity over the last decade due to declining domestic demand caused by an ageing population, a declining birthrate, and a shift to fuel-efficient automobiles.
A ministry officially said, “Unlike other oil products, we expect jet fuel demand to increase as the government targets 60 million foreign tourists by 2030, so we must take a long-term approach.”
