India's jet fuel demand revives after being decimated by COVID-19
India's jet fuel demand is ready for take-off as the country plans to open its doors to international tourists and forms more air travel bubbles, while domestic travel has surged as the local COVID-19 situation has mostly stabilized, with the total number of doses administered in the world's second most populous country crossing 1 billion.
According to the latest data from India's Directorate General of Civil Aviation, or DGCA, passengers carried by domestic airlines in October rose 70.46% month on month and those carried during January-October registered an annual growth of 25.88%.
Indian refiners expect a higher run in the coming months on improved demand for aviation fuels as domestic airlines have started flights to international routes with the relaxation in coronavirus protocols, oil ministry officials said Nov. 23, adding that demand has also received an impetus as the the threat of a third wave of COVID-19 has receded.
"There is a lot of travel optimism due to loosened restrictions, pent-up leisure demand combined with festive and marriage season in India," Shreyans Baid, South Asia oil market analyst with S&P Global Platts Analytics said.
"We expect India's Q4 kerosene/jet demand to grow by 33% over the previous quarter but that will still be some 24% below pre-pandemic levels of Q4 2019 in absence of full-fledged opening up of international travel," Baid said.
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