As India reopens its borders for international flights, it is anticipated that the jet fuel demand in the country is all set to soar up. Domestic air travel is already on its path to normalcy as the aviation industry seems to be reaching numbers that were before covid as the number of fresh covid cases in the country has been on a decline. Moreover, airlines have been able to operate on 100% capacity as they used to in pre-covid times.
The Ongoing Situation
South Asia Oil Market Analyst, Shreyans Baid said that the travel optimism in the country is on the rise as people have been waiting for leisure travel. As the restrictions ease and festivals seasons are at bay, air travel is sure to rise. He added that it is expected that the demand for kerosene/jet will grow by 33% in quarter 4 as compared to the last quarter but will stay 24% low as compared to the data of quarter 4 of 2019.
Indian refiners are also expecting a rise in demand for jet fuel amid the declining graph of covid 19. Oil ministry officials said that the revival of the domestic sector and relaunch of international routes with guidelines and protocols have ensured the rise in demand for jet fuel.
India has also decided to open up its international borders from the next month. Currently, India has air bubble agreements with several countries including Afghanistan, Bangladesh, Bhutan, Canada, France, Germany, Iraq, Japan, Kenya, Nepal, Netherlands, Nigeria, Oman, Qatar, Sri Lanka, Singapore, the UAE, the UK, and the US, among others.
However, this comes in at a time when the demand for fuel is at an all-time rise. The demand for petrol has already crossed the pre-pandemic numbers whereas diesel consumption is almost at that mark. Jet fuel sales have also risen up to 75% of what they were in 2019. Moreover, Crude prices have broken the seven-year record as it has reached up to $85 per barrel.