Australia expands jet fuel imports and green fuel incentives

Australia, which imports most of its 8.5 billion litres of aviation fuel annually, is taking steps to secure supplies and promote domestic sustainable aviation fuel (SAF). The federal budget has expanded the Renewable Fuel Scheme to cover low‑carbon liquid fuels, allowing SAF production to qualify for financial incentives and credits. Sydney Airport CEO Scott Charlton described the move as “a once‑in‑a‑generation opportunity” to revive sovereign capability and create jobs, while industry leaders echoed the need for policy certainty.

Separately, the government has arranged for about 100 million litres of jet fuel to arrive from China in three shipments starting in June, following talks between Prime Minister Anthony Albanese and Chinese Premier Li Qiang. The additional 600,000 barrels of jet fuel are intended to bolster supply confidence amid Middle‑East disruptions, with officials pledging continued efforts to protect Australian fuel security.