Thailand’s National Security Council has approved aviation fuel exports to Vietnam and the Philippines after both governments requested support from Thailand, Nation Thailand has reported.
Thai officials said the exports would not affect domestic fuel reserves or local consumption and described the move as supporting relations with Vietnam and the Philippines.
Thailand banned exports of jet fuel in early March, concerned that the conflict in the Middle East might lead to a shortage.
By the end of April, however, its storage facilities were near capacity.
This comes as jet fuel supply disruptions weigh heavily on Vietnam’s aviation industry.
It’s not only accessing supplies but the rising prices, too.
Vietnam Airlines Deputy Chief Executive Officer Dinh Van Tuan said last week that the airline expects a second-quarter loss of more than VND4.5 trillion (US$170.8 million) as a result of the rising jet fuel prices.
He went on to say that for every US$1 jet fuel price increase, it adds roughly VND300 billion (US$11.4 million) in annual costs to the airline’s bottom line.
He even went so far as to suggest the carrier could record a loss of as much as VND30 trillion (US$1.14 billion) in 2026 if fuel prices remain unchanged and it keeps to its current operating plan.
Singapore jet fuel prices, the regional benchmark, have been slowly trending downward; however, they are still significantly elevated compared to February.