Asian gasoline suppliers reassess Q4 sales to Indonesia after fuel price hike
Staff, 2022-09-15 22:22:00,
September gasoline imports may fall 1-2 million barrels from August
Lack of public transportation system to support base demand
South Korean refiners adjust Q4 export estimates lower
Singapore’s middle distillate traders and major Northeast Asian gasoline suppliers including South Korean refiners are expecting a minor setback in automotive fuel exports to Indonesia in the coming months after Jakarta raised fuel prices by more than 30% to curb soaring subsidies.
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Automotive fuel demand in Southeast Asia’s biggest oil product consuming nation has been fragile amid tepid recovery in the country’s tourism sector, while consumer confidence and purchasing power continued to weaken, with local currency Rupiah falling around 5% against the dollar.
The cutback in the Indonesian government’s subsidy spending and the latest fuel price hike could significantly hit domestic gasoline and diesel demand, leading to less middle distillate imports in the coming months as well, according to traders based in Singapore and Kuala Lumpur, as well as product marketers at two South Korean refiners.
Indonesia’s total September gasoline imports are expected to be as low as 7-8 million barrels, down from previous estimates of above 9 million barrels, S&P Global Commodity Insights reported earlier.
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