Oil usage may plunge to lowest level in 11 years: OR
PTT Oil and Retail Business Plc (OR) sees oil consumption in 2020 dropping to the lowest level in 11 years if the Covid-19 pandemic persists, said Boonma Phonthanakornkul, senior executive vice president of oil and retail business.
“The price of crude oil in the global market has been falling since the beginning of March and could eventually lead to a stock loss in the overall oil business of OR in the first quarter of this year ,” he said. “Last week, we adjusted down oil retail prices for five consecutive days to reflect real cost, although the marketing cost was still high. OR will continue lower oil prices from our reserves to help individual oil dealers.”
Currently, Boonma said, domestic oil usage is dropping as people limit their travel in light of the Covid-19 outbreak . “If the pandemic situation was raised to level 3, it could further cut the country’s oil consumption to the lowest level in 11 years since the Hamburger crisis in 2008-2009.”
OR’s oil sales in January and March expanded 1-2 per cent, mainly due to the openings of 155 new gas stations from the end of 2019. “Currently, we have approximately 1,900 ‘PTT Stations’ nationwide,” he said. “However, since no new station has opened since February, oil sales in March could go down”.
In an attempt to increase sales, OR will start selling the new benzine and gasohol by the end of this month. “The new formula has a higher level of additives that helps prevent engine corrosion with enhanced cleansing capability. It was the first time we have adjusted the formula in the past 11 year,” he added.