Jet Fuel Exports Increase 53% in One Year as COVID Restrictions Ease

Korea Petroleum Association Reports Petroleum Product Export Value and Volume for Q1 This Year

The scale of aviation fuel exports in the domestic refining industry has increased by more than 50% in one year. This is attributed to the surge in global travel demand following the lifting of COVID-19 lockdowns.

The Korea Petroleum Association announced on the 26th that the export value of petroleum products in the first quarter of this year reached $11.849 billion (approximately 15.11 trillion KRW), ranking third among export items after semiconductors and automobiles. This is one rank higher than the first quarter of last year. It analyzed that 57.6% of the crude oil import value of $20.58 billion was recovered through petroleum product exports, contributing to the alleviation of the trade deficit.

A view of a gas station in downtown Seoul.

Among petroleum product export items, aviation fuel showed the largest increase in both export volume and export value. The export volume of aviation fuel in the first quarter of this year was 22.076 million barrels, a 53.1% surge compared to the same period last year, and the export value was $2.35 billion, up 46% during the same period. This is attributed to the reopening of air routes that were closed due to COVID-19, leading to a surge in travel demand.

Thanks to this, the United States, which was the sixth largest export destination last year, rose to third place in the first quarter of this year. The export value to the U.S. ($1.224 billion) set an all-time record for the first quarter. Domestic refiners exported about 38% of aviation fuel export volume to the U.S. The U.S. has been the largest export country for domestic aviation fuel for 10 consecutive years. According to the U.S. Transportation Security Administration (TSA), the number of airport passengers in the U.S. in the first quarter of this year increased by nearly 20% compared to the same period last year, reaching 190 million.

The largest export destination for all petroleum products was Australia (18%), ranking first for two consecutive years. The export value and export volume growth rates were recorded at 29% and 39%, respectively. China, which had consistently been the top export destination in the past, ranked fourth despite reopening. The initially expected reopening effect was weak due to increased self-sufficiency within China.