Vietnam’s aviation authority noted in its document that “in the current context it is difficult to find new suppliers”.
It added that Vietnam’s two refineries are under pressure to expand production of other oil products, making it hard for them to increase jet fuel output.
Even if supply stabilises, soaring fuel prices are disrupting the industry, it also warned, noting many routes would become unprofitable.
Local airline Sun PhuQuoc Airways plans to “adjust flight schedules over the next one to three months due to the volatility of fuel prices”, according to a document it sent to the aviation regulator in March.
The company did not respond to a request for comment.
Petrolimex and Skypec also flagged that the spike in jet fuel prices has meant they are quickly reaching limits on credit lines and urged banks to offer more flexible financing until market conditions normalise, the documents showed.
Front-month jet fuel paper swaps in Singapore on a cost and freight basis are trading at around S$157 a barrel, more than one-and-a-half times higher than pre-conflict levels, LSEG pricing data shows.
https://www.channelnewsasia.com/asia/vietnam-fuel-supply-concerns-flight-reductions-iran-war-5995886
