Vietnam's travel restrictions threaten transport fuels

Vietnam's latest measures to curb its coronavirus outbreak are dealing another blow to Asia-Pacific's stuttering oil products demand.

The country, a net importer of oil products, has started a nationwide social distancing exercise for 15 days from 1 April, which will cut demand for transportation fuels. The government has asked Vietnamese residents to stay at home, although they can still go out for food, essential data-x-items and urgent medical services. Vietnam has 207 confirmed coronavirus cases, the World Health Organisation said yesterday.

Vietnam's gasoil and gasoline import demand already fell sharply in first-half March, although lower gasoline prices lent some support to domestic demand. Vietnam's state-owned Petrolimex cut gasoline prices against weaker market fundamentals on 29 March leading to a surge in demand, which prompted Vietnam's ministry of industry and trade to confirm gasoline supplies are sufficient as people rush to buy and store gasoline. The 92R gasoline price on 29 March was at 11.95dong/litre compared with D18.34dong/l on 29 February.

Vietnam imported 28,398t (240,000 bl) of gasoline in first-half March, a 82pc drop from a year earlier, along with 109,565t (817,000 bl) of gasoil that was down by 22pc, according to preliminary customs data. The reduced demand also prompted Vietnam's 200,000 b/d Nghi Son refinery to issue more spot tenders to sell gasoline and gasoil cargoes.

Vietnam's product imports have already been faltering after the start-up of Nghi Son in 2018 but it will face further pressure with the country's latest measures to combat the coronavirus spread.

By Aldric Chew

source: Argus Media