Asia is facing a growing fuel supply crisis as disruptions in Middle East oil flows continue to hit refinery operations across the region.

According to the latest industry data, refinery throughput in Asia is expected to drop by over 2.7 million barrels per day (bpd) in April and May, reducing total output to around 28.5 million bpd, down from 30.4 million bpd in March.

The decline is primarily driven by reduced imports of Middle Eastern crude, traditionally favored for its high yield of diesel and jet fuel. With supplies constrained due to the ongoing conflict and restricted shipping through the Strait of Hormuz, refiners are turning to alternative sources such as the U.S., West Africa, and Kazakhstan.

However, these substitutes produce lower volumes of key fuels, resulting in a projected shortfall of up to 2 million bpd of diesel and jet fuel across Asia.

For businesses, the impact is immediate. Airlines, logistics firms, and industrial sectors are facing rising fuel costs and potential shortages. The aviation industry, in particular, is expected to see increased ticket prices as jet fuel becomes more expensive.

Economically, the crisis highlights the deep interdependence between Middle Eastern oil supply and global energy markets. Prolonged disruptions could trigger inflationary pressures and slow economic growth across Asia.

Looking ahead, analysts warn that fuel shortages could persist unless Middle East supply routes stabilize, making energy security a top priority for governments.

Source : Reuters.