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Thailand: BCP expects to see 10% oil sales drop
Mostly state-owned energy firm Bangchak Corporation Plc (BCP) estimates its oil sales will decrease by 10% this year because of air travel restrictions, work-from-home measures and business shutdowns over the past three months.
The decrease is a result of oil sale declines of 6% in March and 20% between April and May, with the trend expected to continue this month seeing sales dip another 5%, BCP president Chaiwat Kovavisarach said on Thursday.
These will make the company’s sales decrease by 10%, from 550 million litres per month last year at petrol stations and through wholesale, he said.
The sales drop results mostly from a plunge in jet fuel demand, following a travel ban in many countries, as air traffic declined 90% between April and May.
This caused BCP to adjust its operation at oil refinery units by converting jet fuel into diesel, Mr Chaiwat said. Usually jet fuel output accounts for 12% of total oil refining capacity.
This year capacity also decreased by 10% to 90,000 barrels per day (BPD), from 100,000 BPD last year, he said.
Mr Chaiwat said its oil refinery business may gain some benefits with oil supply in Asia expected to decline later this year as some rival operators in Australia and New Zealand may exit the business after their governments started promoting the use of electrical cars.
BCP also believes state economic relief measures, aimed to urge people to spend more money in the second half of this year, offers positive prospects for oil sales. Among them is a proposal to stimulate domestic tourism, which will increase use of personal cars.
“Travelling on public transport will not return to normal as long as there is no Covid-19 vaccine,” Mr Chaiwat said. “Many people still fear Covid-19, though there is no report of new infections within the country for more than 15 days.”
BCP also teamed up with state-run Krungthai Bank Plc to launch Bangchak Digital Payment campaign, allowing drivers to make cashless payments at its petrol stations, which is expected to become a new trend. The company is the first Thai oil retailer to adopt QR code payment through a mobile phone application.
The digital payment is available at BCP’s Sukhumvit Soi 62 and Srinakarin branches. The new billing system will cover 50 patrol stations in greater Bangkok within this month, rising to 200 later this year, he said.
Source: https://www.bangkokpost.com/business/1933384/bcp-expects-to-see-10-oil-sales-drop