Fuel shortage hits Sydney airport

Sydney airport was expecting one of its busiest weekends of the year

Thousands of passengers are facing delays at Sydney Airport, because airlines are being forced to postpone, divert or cancel flights due to fuel rationing.

The airport, the busiest in Australia, introduced the measure on Thursday, because low production by Sydney oil refineries and a delayed shipment of fuel meant that the airport could only supply one-third of the normal fuel demand.

The Civil Aviation Safety Authority (CASA) estimated that about 2,500 people had been affected by mid-morning on Friday, with the number expected to rise later in the day.

The rationing measures are likely to remain in place for at least two more days.

Singapore Airlines said it would look at seeking compensation over the fuel shortages.

"It is enormously disruptive and very expensive to have to divert aircraft off their normal flight path," Singapore Airlines spokesman Stephen Forshaw told ABC radio.

He said the airline had been forced to divert both passenger and cargo planes because of the shortage.

According to CASA, five Qantas flights were also delayed overnight, when they were forced to pick up fuel at other Australian airports.

A Japan Air flight from Sydney to Tokyo was cancelled completely.

The shortage coincides with one of the busiest times of year for Sydney Airport.

"It's the start of the school holidays, the (Australian Rules Football) grand final in Melbourne, the (National Rugby League) final in Sydney," CASA spokesman Peter Gibson told the Sydney Morning Herald newspaper.

Oil companies are meeting to discuss the crisis, in an attempt to reach a rapid solution.