The largest importer of automotive fuel in Asia, Indonesia, is poised to break its gasoline demand and import records in 2023. The country’s return to normal life after lifting COVID-19 travel restrictions has fueled the growth, although it is expected to slow down slightly in line with the country’s economic direction.
According to Ristad Energy, a consulting firm, Indonesia’s gasoline consumption is likely to reach a record high of 670,000 barrels per day, breaking the previous record of 635,000 barrels per day in 2022. This surge in imports will tighten the Asian gasoline market and is expected to boost refining margins for refiners in the region.
The Indonesian government has also initiated a biofuel program to reduce dependence on foreign imports, which will complement the country’s biodiesel usage. Wood McKenzie, a well-known energy consulting firm, reported that Indonesia’s gasoline imports have surpassed pre-COVID-19 levels and reached 380,000 barrels per day in 2022, a record since data collection began in 2010. This number is expected to rise to 390,000-400,000 barrels per day in 2023.
In conclusion, the growth in gasoline demand and imports in Indonesia is expected to break records and have a significant impact on the Asian gasoline market in 2023.