Vietnam’s Petrolimex halts April-May jet fuel imports

Vietnam's state-owned downstream firm Petrolimex does not plan to import any jet fuel in April or May because of a slump in domestic demand.

The only deliveries expected are of around 10,000t that was pushed back from February to April arrival, market participants said.

Vietnam imported 76,099t (40,000 b/d) of jet fuel in the first half of March, according to preliminary customs data. This was down by 11.2pc from the second half of February and 8.4pc lower than the year-earlier period. Vietnam typically imports jet fuel from south China, Singapore and Thailand.

Jet fuel demand has fallen after the government banned entry of all foreigners from 22 March, except for diplomats and other special cases. National carrier Vietnam Airlines has suspended all international flights through the end of April, and most domestic routes until further notice.

Vietnam's jet fuel tanks are likely full and some product has started to be held in floating storage, market participants said. This could not be confirmed with the country's refiners.

Petrolimex concluded a mini-term tender last year to buy jet fuel for delivery during the first quarter of 2020. It sought three 10,000-13,000t (79,000-102,000 bl) cargoes and one 9,000t cargo each month for shipments without a form D certificate, which exempts cargoes from import taxes in Vietnam. Petrolimex also sought one 10,000-13,000t cargo in each of January and February for shipments with a form D certificate. The results of the tender could not be confirmed.

Petrolimex's parent company state-owned PetroVietnam has asked the government to implement policies to minimise oil product imports to protect domestic refiners, which have been hit by the fall in demand caused by the Covid-19 pandemic and the impact of lower oil prices.

By Sarah Giam

source: Argus Media