Tuesday 25 September 2018

Slowdown seen in GCC fuel consumption

DUBAI, September 19, 2017

An economic slowdown coupled with energy reforms has adversely affected domestic fuel consumption growth across most of the GCC, and in some cases even led to negative growth, a report said.

Saudi Arabia, the region’s largest fuel consumer, saw a 10 per cent decrease in demand for diesel in 2016, while gasoline demand flatlined, added the latest Energy Research from Arab Petroleum Investments Corporation (Apicorp)..

Kuwait, Qatar and Bahrain have also experienced a drop in gasoline consumption since major reforms were introduced in 2016, according to the report.

Lack  of  transportation  alternatives  has  resulted  in  greater  fuel  switching,  as consumption of premium grade gasoline in Oman declined and was offset by larger volumes of the lower grade fuel.

Having implemented energy liberalisation plans in August 2015 –leading to lower domestic prices and falling global crude prices –the UAE is the only country where demand for both gasoline and diesel increased in 2016, the report said. – TradeArabia News Service

Tags: Apicorp | Fuel consumption |

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