Oil Consumption at Its Lowest Since IMF Crisis

Under the influence of high oil prices, the consumption of petroleum home appliances has dropped drastically, and oil prices in gasoline stations have hit their highest levels ever since.

According to the Korea National Oil Cooperation (KNOC) May 23, the oil consumption of each household fell by 30 million barrels for the first time, with 26,386,000 barrels used from January to April compared to 25,657,000 barrels over the same period of time in 1998.

In particular, the ratio of oil consumption over the whole amount use by households was 10.15 percent, which is lower than the 11.21 percent posted in 1998.

Such a fact means that the high price of oil in each household is felt more acutely than in other sectors such as manufacturing industry.

The percentage of petroleum products use by households dropped severely in this time as well, after it rallied to 13 percent in 1999 after falling sharply in 1998 from 15.17 percent in 1997 just before the IMF crisis.

The average price of regular smokeless petroleum in gas stations around the nation was 1,372.57 won per liter, and increase of 9.87 won compared to the price of a week ago.

This price surpasses the highest price of 1,362.70 won set in the second week of this month just after a week. The investigation was conducted from 556 gas stations all over the country by the KNOC. The price of gasoline also hit its highest mark of 873.43 won by increasing 8.70 won, and indoor lamp oil and lamp oil for boilers were priced at 725.95 won and 733.18 won, increasing by 4.32 won and 1.97 won, respectively.

On the other hand, OPEC has decided to put off, in the meeting in Amsterdam Netherlands May 22, whether it would increase the amount of crude oil production until its next meeting on June 3. This overturned the prediction that whether to increase oil production would be decided in this meeting. OPEC President Purnomo Yusgiantoro said, “Today’s meeting is not an official one and we will decide whether to accept the proposal asking for a crude oil increase by Saudi Arabia in a formal meeting in Beirut in June.

Ki-Jeong Ko koh@donga.com