South Korean refiners and trading firms exported a record volume of gasoline in October, after gasoline production the month before rose to the highest level since December 2021.
South Korean export volumes rose by 17pc on the month and 63pc on the year to hit 376,000 b/d, the highest level since records began in January 2012, according to GTT data.
Gasoline production volumes rose to the highest level since December 2021 at 510,000 b/d in September 2023, in line with an increase in gasoline yield, according to latest data from the Korean Monthly Oil Statistics (KMOS) by state-owned KNOC. This was a 9pc increase on the month and 7.7pc on the year. Refiners have also raised the percentage yield of light distillates. South Korean refinery gasoline yield also rose to 14.82pc, the highest level since October 2021 when the yield was at 14.89pc, according to KMOS data.
South Korean refiners are "quite responsive" and could be ramping up run rates in light of lower export volumes from major supplier China, a gasoline analyst said.
Singapore was one of the main beneficiaries of the increase in exports, with South Korea exporting more than 100,000 b/d of gasoline to Singapore in October 2023, almost three times the volume compared to the same month last year.
The extension of the fuel subsidy could also be another reason for the increase in exports, a South Korean refiner said. South Korea will extend a tax discount of about 25pc for gasoline and 37pc for diesel until the end of the year, from October earlier.
The extension of the subsidy could have led to lower incentives for wholesalers to buy and store during the month of October, leading to higher exports, the refiner said.
