Japan to boost jet fuel production and imports amid tourism boom

Japan plans to increase jet fuel production and imports to address a pick up in demand from flights amid a boom in tourism, according to a draft government plan presented on Tuesday.

The initiative aims to tackle a recent jet fuel shortage affecting commercial flights, which has hindered the expansion of international flight capacity and the introduction of new routes.

Tourism to Japan bounced back after visa-free travel resumed in late 2022 following strict COVID-19 border controls, with the yen's slide to a 38-year low increasing 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 initiatives, the draft proposes assessing fuel demand growth at each airport while ensuring sufficient supply by ramping up local production and increasing imports.

The plan also includes strengthening transport systems by using the full capacity of lorries and ships.

For medium- and long-term initiatives, the draft proposes increasing the number of tanks at refineries and airports, securing more lorries and enlarging ships, and updating ageing cargo handling equipment.

Japanese refiners have been reducing oil processing capacity in the past decade to reflect falling domestic demand due to an ageing population, a decreasing 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 in 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.