Business | Oil & Gas
Japanese demand for oil products plunged to 21-year low in August
Japan's domestic oil product demand fell to its lowest in 21 years in August as high oil prices accelerated the already declining use of gasoline and kerosene, government data showed on Monday.
- Agencies
- Published: 00:02 October 1, 2008
Tokyo: Japan's domestic oil product demand fell to its lowest in 21 years in August as high oil prices accelerated the already declining use of gasoline and kerosene, government data showed on Monday.
Oil product sales in the world's third-biggest oil consumer fell 11.8 per cent from the same period a year earlier to 15.17 million kilolitres (kl) last month, or about 3.08 million barrels per day (bpd), the third straight month of year-on-year decline, the Ministry of Economy, Trade and Industry (Meti) said.
That marked the lowest oil demand for August since 14.6 million kl recorded in 1987, a Meti official said.
Gasoline sales, which made up 31 per cent of total oil consumption, tumbled 14 per cent from a year earlier to 4.69 million kl (951,000 bpd), marking a 15-year low for the month and the first time since August 1994 that the volume fell below a five million kl milestone for the month, the Meti official said.
Kerosene sales fell 28.5 per cent to 0.41 million kl.
Gasoline use in Japan began falling two years ago as drivers increasingly switched to more fuel-efficient cars or public transport and the automobile registrations began its first descent in history in the past year ended in March.
Cleaner fuels
Oil sales were also hurt by more than 10 per cent declines in A-type fuel oil, gas oil and kerosene as individuals and the industry shift to greener natural gas and electricity, away from costlier oil.
Several Japanese refiners have slashed oil production in the recent months amid shrinking demand and margins in Asia, seeking to curb fuel supplies and revive profit margins. Export-oriented rivals in South Korea and Singapore have joined in the curbs.
Crude oil imports fell 1.2 per cent to 20.36 million kl (4.13 million bpd).
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