Indonesia, Asia-Pacific's largest gasoline buyer, continued to import more gasoline volumes in March as compared to volumes during pre-Covid-19 times.
Gasoline import volume into Indonesia was at 379,500 b/d in March, above the 2018 and 2019 averages of 325,000 b/d and 338,700 b/d respectively, according to customs data. Indonesia imported 315,650 b/d of gasoline above the 90R grade but below 97R, and just 63,850 b/d of other gasoline grades in March.
There is pent-up travel demand in Indonesia, with everyone trying to return to their hometowns after two years of travel restrictions, a gasoline trader said.
Singapore was Indonesia's main supplier of gasoline at 229,000 b/d, with Malaysia and India at 68,100 b/d and 53,600 b/d respectively.
Asian gasoline margins — or the Argus 92R Singapore gasoline price against Ice Brent — have also responded to the increase in demand from Asia-Pacific's largest gasoline buyer, with margins hitting a record high of $27.42/bl on 5 May.
Gasoline margins are expected to stay supported with the approach of the peak summer driving season in the US and a reduction in gasoline supplies, as major supplier China is expected to continue to cap oil product exports as a result of the country's efforts to reduce carbon emissions.
