Ministry of Industry and Petroleum Association reveals position on short-term kerosene supply and demand imbalance
“In case of short-term supply shortage, we will take preemptive measures such as rental of kerosene stockpiled by the government”
[에너지신문] The Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) and the Petroleum Association announced that the oil refining industry will actively endeavor to prevent disruptions in the supply and demand of kerosene during winter.
There is concern that it will be difficult to obtain kerosene for heating, as refineries whose performance has deteriorated in the recent aftermath of Corona 19 have reduced facility utilization rates and reduced production.
Accordingly, the Ministry of Industry held a winter kerosene supply and demand inspection meeting with the four oil refineries on the 22nd and 29th two times on the 22nd and the 29th to check the status of kerosene supply and demand for each company and future plans. In addition, he emphasized that the company plans to continuously check the supply and demand of kerosene in winter with the four oil refineries until February next year, and take necessary measures, such as lending the government stocked kerosene if necessary.
According to the Ministry of Industry, the four oil refineries are in a tight supply and demand situation due to the recent increase in demand due to the cold wave, but they will try as much as possible to ensure that there is no disruption in the supply and demand of kerosene by February next year by expanding the production of kerosene through process adjustments, and renting kerosene from the government if necessary. Expressed its position.
In particular, he urged refiners to maintain an appropriate utilization rate to expand kerosene production so that there would be no disruption in the supply and demand of kerosene until February next year, and promptly proceed with the application for rental of government stocked kerosene in the event of a short-term supply shortage.
In addition, the Petroleum Association explained that the recent disruption in supply and demand for kerosene in some regions was due to exhaustion of stocks in the oil distribution industry due to an increase in demand due to a sudden cold wave. “Domestic refineries are “We will come up with a plan and, if necessary, we will work closely with the government to make use of the government reserves.”
On the other hand, kerosene accounts for about 2% of the total consumption of domestic petroleum products, and is mainly used for heating homes and agriculture and fishing. Due to the characteristics of heating oil, seasonal consumption variation is large, and about 70% of demand is concentrated in winter.
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