Coronavirus: Jet fuel consumption to increase due to reopening of air borders

Stakeholders in the aviation sector are likely to witness an increasing demand in the consumption of jet fuel following the reopening of the air borders to international traffic.

According to a study from National Petroleum Authority (NPA), which was conducted by the Institute for Energy Security (IES), figures showed that jet fuel for the first quarter of this year

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This represented a huge decline of 48.40 million liters for the period as compared to 131.53 million liters for 2019.

Executive Director of the IES, Nana Amoasi VII speaking in an interview with the B&FT Newspaper attributed the reduction to the decline in consumption of petroleum products and the drastic fall in global crude prices.

“The spread of the coronavirus significantly slowed economic activity across the globe. Travel restrictions and flight cancellation across the world, as well as the closure of shops and production outlets in China and around the world, induced less demand for oil and fuels,” Amoasi explained.

He added: “With the announcement of the commencement of international flights into and out of the country, the demand for this essential fuel for flights is expected to grow to possibly pre-COVID-19 levels. Consumption could also possibly surge past February 2020 levels, should the momentum be maintained.

"The trend of an increasing number of flights to and from Ghana will directly affect jet fuel consumption in the country. Given the recent data from the World Health Organization, the end of the COVID-19 crisis seems closer. If that becomes the case, we foresee Ghana recording close to 170 million liters in Jet fuel consumption at close 2020; as airline companies, entertainment, and tourism sectors bounce back in business,”

Meanwhile the petroleum regulator, the NPA revealed that jet fuel uptake in March this year for Ghana was pegged at 16.45 million.

This further indicated a decline falling from 23.66 million liters in February due to the coronavirus induced closures of air borders.