Jet fuel is the Pacific’s blind spot – regional co-operation can fix it

Thursday, 23 April 2026

Pacific nations, including New Zealand and Australia, need to be more co-ordinated when it comes to security of supply of aviation fuel, writes Lurion De Mello.

Lurion De Mello is senior fellow of the Higher Education Academy (SFHEA) at Australia’s Macquarie Business School.

OPINION: The global focus on jet fuel shortages has, understandably, been centred on Europe and the Middle East. But for New Zealand, Australia and the Pacific islands, this moment exposes a quieter – and potentially more damaging – vulnerability: geographic isolation combined with fragmented fuel security planning.

Recent reporting on strained jet fuel markets has highlighted tanker movements to New Zealand and the growing unease among airlines dependent on long, complex supply chains. That concern is justified. Jet fuel does not move like crude oil. It is a highly specified product, produced at a smaller number of refineries, shipped along constrained routes and typically stored in far smaller volumes at airports. When supply tightens, distance matters – and the Pacific is a long way from everywhere.

This is not yet a crisis, but it is a warning. And it raises a question New Zealand and its neighbours should confront now: why are Australia, New Zealand and the Pacific islands still managing aviation fuel security largely in isolation?

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Unlike Europe – which is openly discussing fuel-sharing arrangements and joint purchasing – the South Pacific lacks any standing framework for co-operation on jet fuel. This is despite the fact that Australia sits on substantial refining and import infrastructure, New Zealand relies almost entirely on imported refined fuel, and Pacific carriers such as Fiji Airways face disproportionately high exposure to supply disruptions and price spikes.

Regional aviation is not a luxury in the Pacific; it is economic infrastructure. Tourism, labour mobility, freight and national connectivity all depend on reliable flight operations. When fuel costs surge or deliveries are delayed, airlines do not simply absorb the shock – routes are reduced, prices rise, and smaller carriers are pushed to the edge first.

A regional jet-fuel co-operation mechanism would not be radical. It could be modest, pragmatic and voluntary, built around three pillars.

First, co-ordinated fuel stock visibility. Governments and major suppliers already track fuel volumes nationally, but there is little shared situational awareness across the region. A basic mechanism allowing Australia, New Zealand and participating Pacific states to understand aggregate jet fuel availability would reduce uncertainty and prevent over-reaction during periods of stress.

Second, emergency fuel-sharing arrangements. This would not mean permanent redistribution of fuel stocks, nor open-ended obligations. It would simply formalise the ability – during defined disruptions – to temporarily support critical aviation operations in neighbouring states, particularly those with limited storage and no domestic refining capability.

Third, co-ordinated commercial solutions. There is no reason regional co-operation must stop at governments. Long-haul carriers passing through Australia already have flexibility in their fuelling strategies. In a supply-constrained environment, airlines such as Emirates or Qatar Airways could make planned stopovers in Sydney, Melbourne or Brisbane to uplift additional fuel, easing pressure on smaller destination airports without compromising safety or efficiency.

This is not without precedent. Airlines regularly tanker fuel when price or availability dictates. What is different now is the strategic case for viewing jet fuel as a shared regional resilience issue, rather than a purely commercial input.

Critically, co-operation does not mean complacency. New Zealand must continue strengthening its own fuel security settings, diversifying supply routes and improving transparency around aviation fuel stocks. But a go-it-alone approach leaves the country exposed to geopolitical shocks far beyond its control – from shipping disruptions in the Middle East to refinery outages thousands of kilometres away.

The Pacific is often discussed as a region when it comes to climate risk, trade or security. Jet fuel rarely enters that conversation – until it becomes a problem. The current strain in global fuel markets offers a narrow window to address that blind spot before disruption forces reactive decisions.

Airlines plan years ahead. Fuel supply resilience deserves the same horizon. For New Zealand, Australia and the Pacific, co-operation would not just cushion the next shock – it would signal that regional connectivity is being treated as the strategic asset it truly is.