Domestic Jet Fuel Consumption Drops 40% in First Half... Gloom Persists in Second Half

[Asia Economy Reporter Park Soyeon] Domestic petroleum product consumption in the first half of this year decreased by about 3% compared to the same period last year.

Due to the impact of the novel coronavirus infection (COVID-19), the demand for petroleum products in the transportation sector decreased most significantly, with aviation fuel consumption plummeting by 40%.

According to the analysis data on petroleum product consumption in the first half of this year by the Korea National Oil Corporation on the 11th, consumption in the first half was 443.933 million barrels, down 2.9% from the first half of last year.

The main cause of the decrease in petroleum product consumption is COVID-19. With domestic and international travel restricted due to social distancing, fuel petroleum product consumption sharply declined, reducing overall petroleum product consumption.

Additionally, the mild winter weather earlier this year led to decreased heating demand, and the IMO2020 regulation strengthening the sulfur content limit in marine fuel oil also had an impact.

The petroleum product most severely affected by COVID-19 was aviation fuel. With overseas travel virtually blocked and travel demand plummeting, aviation fuel consumption in the first half fell 40.5% from last year to 11.598 million barrels.

Gasoline consumption, a major raw material for automobiles, decreased by 4.4% to 38.836 million barrels, and diesel consumption decreased by 6.7% to 79.869 million barrels.

Although major petroleum product consumption decreased as such, LPG consumption increased by 9.0% from last year to 60.977 million barrels, supported by increased demand as a raw material in the petrochemical industry.

Due to the impact of COVID-19, monthly petroleum product consumption continuously declined from January to April this year, dropping to 69 million barrels in April, but consumption has shown signs of recovery since May with increased domestic travel.

The Korea National Oil Corporation stated, "Petroleum consumption in the transportation sector has decreased to an unprecedented extent," adding, "Although the resurgence of COVID-19 raises concerns about further consumption declines in the second half of the year, we hope to overcome the crisis as steady demand has continued in industries other than transportation."

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