Fuel demand grows 13.5% amid rebounding economy

Fuel demand grows 13.5% amid rebounding economy

Thai fuel consumption for the first seven months of 2022 grew by 13.5% year-on-year for all types except kerosene, says the Department of Energy Business.

Fuel consumption in the transport, industrial and household sectors grew to 151 million litres per day from January to July.

Nantika Thangsuphanich, director-general of the department, attributed the increase to the government's easing of measures against Covid-19, including the relaxing of air and road travel restrictions.

Kerosene was an exception because people shifted to cheaper fuels, she said.

The price of fuel skyrocketed early this year, especially after Russia invaded Ukraine in late February.

The government launched subsidy programmes to cap the prices of diesel, compressed natural gas (CNG) and liquefied petroleum gas (LPG) in order to relieve people's higher costs of living.

According to the department, fuel prices began to decline in June.

Diesel recorded the highest usage, growing by 16.2% to an average of 73.4 million litres per day.

Demand for diesel continued to grow as the government capped its retail price at 34.94 baht per litre by draining money from the Oil Fuel Fund to keep the price under control.

Authorities subsidised the price of diesel by 5.38 baht per litre, keeping it well below the market price of 40-41 baht.

Although gasoline was not included in the subsidy programme, its consumption also grew by 2.4% to 29.8 million litres per day.

Ms Nantika said jet fuel, demand for which plunged last year, saw consumption grow by 69.5% to an average of 7.59 million litres per day.

In 2021 jet fuel usage declined by 35% to an average of 4.86 million litres a day, down from 7.5 million litres in 2020.

She said total LPG consumption grew by 9.4% to 18.7 million kilogrammes per day.

A look at LPG usage by sector saw its consumption as a cooking gas increase by 2.2%, its use as a feedstock for making polymers rose by 11.4%, and demand for it in the transport industry grew by 23.6%.

Consumption of CNG also grew by 14.8% to 3.39 million kg per day as the gas was covered by a price subsidy programme run by sole CNG seller PTT Plc, which capped its price at 13.62 baht per kg.

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