Kerosene supply and demand disruption due to cold waves… “Increase production and utilize government reserves”

Input 2020.12.31 17:11 | Revision 2020.12.31 17:34

As the recent cold wave and prolonged coronavirus disruption in the supply and demand of kerosene in some regions, the oil refining industry decided to respond by expanding production and utilizing the amount of oil stockpiled by the government.

On the 31st, the Korea Petroleum Association said, “Domestic oil refiners will come up with measures from various angles such as expanding kerosene production for a stable supply and demand of kerosene.”

In addition, he explained that the recent disruption in the supply and demand of kerosene in some regions was due to the exhaustion of inventory in the oil distribution industry due to an increase in demand due to a sudden cold wave. Kerosene accounts for about 2% of the total consumption of domestic petroleum products. It is mainly used for heating homes and agriculture and fisheries. Due to the nature of heating oil, seasonal consumption variation is large, and about 70% of demand is concentrated in winter.

Recently, at gas stations nationwide, there has been an emergency in the supply and demand of kerosene so that tankers wait in line to obtain kerosene. Kerosene is produced for both aircraft and heating, but as the production of aviation oil sharply declined as consumption of aviation fuel decreased due to the corona crisis this year, production of kerosene for heating also decreased.

The Petroleum Association said, “The oil refining industry will actively work to prevent disruptions in the supply and demand of kerosene in winter.”