Jet fuel demand in China is seeing a rise as more flights take to the skies, providing a much-needed boost to local refiners. The plants owned by China Petrochemical Corp. and PetroChina Co. are increasing their production of jet fuel to capitalize on the improved profit margins. This increase in demand comes at a time when diesel and gasoline consumption remains low, posing challenges for the industry.
According to government data, total air traffic in China grew by 14% in June compared to the same period in 2019, before the pandemic. Domestic flights saw an even higher increase of nearly 18%. This surge in air travel is driving the need for more jet fuel, creating an opportunity for refiners to meet this demand.
The rise in jet fuel demand is a welcome development for the Chinese refining sector, which has been struggling with subdued demand for other petroleum products. As the aviation industry continues to recover from the impact of the pandemic, refiners are shifting their focus towards producing more jet fuel to meet the growing needs of airlines.
China, as the world’s largest crude oil importer, plays a significant role in the global oil market. The increase in jet fuel production not only benefits local refiners but also has a positive impact on the overall oil industry. As air travel gradually returns to pre-pandemic levels, the demand for jet fuel is expected to continue to rise, providing a much-needed source of revenue for refiners.
The optimization of jet fuel production by China Petrochemical Corp. and PetroChina Co. highlights the adaptability of the country’s refining industry. By responding to changing market conditions and shifting consumer demand, Chinese refiners are able to maximize their output and remain competitive in the global market.
In conclusion, the surge in jet fuel demand in China is a promising sign for the country’s refining sector. As the aviation industry bounces back and air travel increases, refiners are well-positioned to meet the growing demand for jet fuel. This trend not only benefits local refiners but also contributes to the overall recovery of the oil industry.