Petroleum Product Consumption Hits Lowest in 4 Years... Notable Decline in Aviation Fuel and Diesel in February

Impact of Sharp Decline in Aviation Fuel, Diesel, LPG, and Other Transport Fuels
Consumption Expected to Continue Decreasing After March

On the first day of the expiration of the temporary fuel tax reduction measure, gasoline prices nationwide rose simultaneously on the 1st. According to Opinet, the oil price information service of the Korea National Oil Corporation, the average gasoline price at gas stations nationwide was 1,508.02 KRW per liter at 1 PM that day, an increase of more than 11 KRW compared to the previous day. The photo shows a gas station in downtown Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Hwang Yoon-joo] Last month, domestic consumption of petroleum products in South Korea fell to its lowest level in four years. This decline is attributed to reduced demand for major transportation fuels such as jet fuel and diesel due to the spread of the novel coronavirus disease (COVID-19).

According to the Korea National Oil Corporation, total domestic petroleum product consumption in February recorded 72.12 million barrels. This is the smallest volume in four years since April 2016, when consumption was 70.82 million barrels.

In particular, the average daily petroleum product consumption last month was 2.48 million barrels, a 4.8% decrease from January's 2.61 million barrels, when signs of consumption contraction appeared due to the COVID-19 situation in China. February had fewer operating days than usual, and unlike last year, there was no Lunar New Year holiday, so the actual decline in consumption is considered to be even greater.

Looking at the products in detail, the average daily consumption was recorded as follows: liquefied petroleum gas (LPG) 315,000 barrels (-22.2%), bunker C fuel oil 59,000 barrels (-14.4%), jet fuel 96,000 barrels (-13.5%), diesel 421,000 barrels (-11%), kerosene 69,000 barrels (-9.2%), naphtha 1,225,000 barrels (-3.8%), gasoline 203,000 barrels (2.5%), and heavy fuel oil 47,000 barrels (38.2%).

The products with the most significant consumption drops were LPG, bunker C fuel oil, jet fuel, and diesel. LPG, mainly used as a substitute for naphtha in taxis and petrochemical processes, and diesel, used in freight trucks, saw reduced consumption. Jet fuel consumption also declined as international flights, including those to China, were largely suspended. Bunker C fuel oil, used as ship fuel, saw decreased consumption due to environmental regulations by the International Maritime Organization (IMO) and reduced logistics volume.

An industry official explained, "Due to the COVID-19 outbreak, external economic activities have contracted, leading to reduced consumption mainly of transportation fuels," adding, "For airlines, operations on routes to Europe and the United States have virtually stopped since March, so consumption is expected to decline significantly."

This content was produced with the assistance of AI translation services.