Fuel demand not seen to return to 2019 levels

By Jordeene B. Lagare December 28, 2020
https://www.manilatimes.net/2020/12/28/business/business-top/fuel-demand-not-seen-to-return-to-2019-levels/818893/


FUEL demand in the Philippines is seen to increase again once the economy fully reopens.

This photo shows a Shell fuel station in Metro Manila. provincial buses are allowed to THE MANILA TIMES FILE PHOTO

However, a government official said the demand for petroleum products is not projected to return to its 2019 levels.

“For domestic consumption, I think there will be an increase in domestic consumption pagbukas ng economy (once our economy reopens),” said Energy Secretary Alfonso Cusi.

Data from the Department of Energy (DoE) showed that fuel demand decreased by 22.8 percent in the first half of 2020 due to the reduced economic activity from lockdown and travel restrictions caused by the coronavirus disease 2019 (Covid-19) pandemic.

But Cusi said it is “very difficult” to say whether or not oil demand will return to the 2019 levels. “But it may not go back immediately to the 2019 level.”

“But I think it will be, not at that level, but it will be within the range, especially if the vaccine (is available), if our population will be vaccinated. Magkakaroon yan ng (there will be a) demand,” he added.

A higher demand in petroleum products is also expected as the transportation sector reopens.



“Also, nagkakaroon tayo ng opening in the transportation sector (the transportation sector is reopening), where even the provincial buses are allowed to operate, so magkakaroon na tayo ng (we will see an) increase in demand in petroleum,” Cusi said.

Nonetheless, Cusi said electricity demand is projected to surge once the economy has fully reopened.

“Pagdating dito sa power, sa energy, we have to make sure that we are ready, building up the supply. Hindi puwede yung intermittent supply in our economic recovery (We have to make sure that we are ready and we have sufficient supply. We cannot afford to have an intermittent power supply as our economy recovers),” Cusi said.

The Covid-19 pandemic, said Cusi, presents both “a problem and an opportunity” to do the catchup work in bolstering the country’s power supply.

At the onset of the pandemic, the DoE observed a decline of 30 percent in power demand.