The B-C oil consumption decrease in power generation sector led the overall decrease, despite the consumption increase of kerosene and propane fueled by a temporary tax cuts for winter season in the first quarter of 2008.
Daily petroleum consumption reached 2.11 million barrels per day. Consumption in June 2008 marked a 6.5% decrease compared with the same month in 2007, affected by consumption decrease of most products except for naphtha and butane.
The Korea National Oil Company said that sector-wise, consumption decreased in most sectors except for the residential and commercial sector.
A general strike by the Korean Cargo Transport Workers’ Union weakened demand for diesel and B-C oil for transportation, and the deteriorating cost competitiveness of B-C oil in power generation sector led the decrease.
In the industrial sector, decreasing demand for naphtha and B-C oil led the overall decrease. For the residential and commercial, strong demand for kerosene, mainly fueled by the temporary tax cuts, led the increase.
