Domestic Aviation Fuel Consumption Hits 10-Month High... Exports Also Reach Year-to-Date Maximum

Domestic Jet Fuel Consumption in May Reaches 1.866 Million Barrels
May Jet Fuel Exports Also Hit Record High of 6.856 Million Barrels
Demand Recovery Accelerates Alongside Expanded Vaccine Coverage

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] Jet fuel consumption has reached its highest level in 10 months. This is thanks to the increase in air cargo, as well as the revival of passenger demand centered on non-stop flights and the Jeju route. With the rapid expansion of vaccination rates, jet fuel consumption is expected to increase further as the summer vacation season and the resumption of international flights coincide.

According to the Korea National Oil Corporation on the 28th, domestic jet fuel consumption in May was recorded at 1.866 million barrels. This is the highest consumption in 10 months since July last year (1.953 million barrels).

The increase in domestic jet fuel consumption is due to the steady growth in air cargo demand and the recovery of travel demand following vaccinations. As of the 26th, the first dose vaccination rate for COVID-19 reached 29.8%. With vaccinations in full swing and the expansion of non-stop flights and Jeju routes, domestic passenger demand is also on the rise.

In fact, the number of domestic passengers in May was 3,115,255, a 65% surge compared to the same month last year (1,887,474). The domestic passenger count surpassing 3 million again is the first time in 1 year and 7 months since October 2019 (3,030,454). Jet fuel exports also hit a record high this year at 6.856 million barrels. The increase in jet fuel exports is interpreted for the same reasons.

The refining industry expects refining margins to improve as jet fuel demand increases with the summer vacation season. Jet fuel is one of the three major products sold alongside diesel and gasoline. It is considered a profitable source of income due to its relatively high margins and large sales volume. After COVID-19, jet fuel demand plummeted, causing jet fuel prices to fall below crude oil prices, but this price inversion has disappeared this year.

A refining industry official said, "With the expansion of vaccination rates in the second half of the year and the implementation of the ‘Travel Bubble’ policy, the resumption of international flights will accelerate the recovery of demand, and refining margins are expected to gradually improve."

Meanwhile, domestic gasoline consumption in May was recorded at 7.118 million barrels, and diesel consumption was 14.253 million barrels. Both gasoline and diesel consumption are gradually increasing.

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