Italy lockdown could cut transport fuel demand

The Italian government has imposed extended restrictions aimed at preventing the further spread of the coronavirus outbreak, including measures that could reduce transport fuel demand.

The measures include allowing the government to "arrange for the reduction and suppression of inter-regional automotive services and rail, air and sea transport services", if it deems this necessary.

The country's prime minister Giuseppe Conte yesterday signed into law this and a series of other actions suspending a range of retail and wholesale activities, and curbing movement, as a response to the most severe outbreak of the coronavirus in any country outside China. Italy has more than 12,000 confirmed cases and more than 800 deaths.

Retail sales of transport fuel are exempt from the new restrictions.

Italian gasoline demand was 158,600 b/d and diesel demand was 511,100 b/d in January, the most recent month for which official data are available. Jet fuel demand was around 82,900 b/d, according to industry association Unione Petrolifera. Italian refineries imported 935,000 b/d of crude in February, according to Argus data.

By Ben Winkley