Vietnam Warns of April Flight Cuts as Jet Fuel Imports Cut
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- Vietnam's Civil Aviation Authority warned airlines in a March 9 document to prepare for jet fuel shortages from April, instructing airport operators to add parking space "in case they have to cut down on operations due to lack of aviation fuel."
- Vietnam imports more than two-thirds of its jet fuel, with 60% sourced from China and Thailand, both of which have restricted fuel exports after the Iran war; supplies from Singapore have also fallen.
- Major importers Petrolimex and Skypec said they can only guarantee jet fuel supplies for March, warning April contracts may not be fulfilled; Skypec urged the regulator to restrict air transport to essential domestic routes if the conflict drags on.
- Foreign Minister Le Hoai Trung asked Chinese counterpart Wang Yi for "close coordination to ensure energy security" during a Hanoi meeting, but the Chinese readout of the meeting did not mention energy security at all.
- Prime Minister Pham Minh Chinh separately asked Thailand's ambassador to help address the shortage, while the regulator noted that "in the current context it is difficult to find new suppliers."
- Singapore jet fuel swaps are trading at around $157 per barrel, more than 1.5x pre-conflict levels, prompting Sun PhuQuoc Airways to plan flight schedule adjustments over the next one to three months.
- Petrolimex and Skypec also warned they are reaching credit line limits and urged banks to provide more flexible financing until market conditions normalize.
Why it matters: With 60% of jet fuel imports coming from two neighbors that are now restricting exports, Vietnam has no easy replacement suppliers, and importers cannot even guarantee April contracts. The roughly 1.5x price spike to ~$157/barrel means routes may become unprofitable even before formal cuts hit, and Vietnam's diplomatic asks landed with a notable silence: China's readout of the Hanoi meeting did not mention energy security at all.
