Gasoline demand in Japan hasbeen declining for past two years due to increasing fuel prices but export ofrefined products is increasing and touched record high in 2007.

The demand for gasoline in Japandeclined for the second consecutive year in 2007, which enabled refiners to exportrefined products, and consequently, the export touched a record high, as perthe news published by Bloomberg.com.

There was decline of 1.7% to nearly60 Million Kiloliters in sale of gasoline last year. The export of refinedproducts increased by 27% and reached to 28 Million Kiloliters and crossed theprevious record of 22.3 Million Kiloliters set in 1975. Among all the refinedproducts, diesel export jumped 92% and reached 7.96 Million Kiloliters last yearand alone contributed 27% to the total gains from export of all refinedproducts.

This fall in the consumption ofgasoline is due to rising prices of gasoline which pressurized the consumers,manufactures, and office building owners to look for methods of energy saving.Spiraling crude oil prices have surged cost of running electricity generators, cars,and boilers etc.

Also, Japan is a Kyoto Protocolsignatory, which bound it to curtail the emission of greenhouse gases. And government’scommitment to reduce the emission of greenhouse gases is declining the gasolineconsumption in the country.

Slump in the demand for gasolinein the domestic market has encouraged refined product exporters to enhancetheir export to other destinations. Even many exporters in Japan have startedinvesting in plant upgradation and shipping terminals to make use of the risingdemand of petroleum products in the US, China, India and other Asian countries.Consequently, Japan export of refined products touched a record high in 2007since 1957 when it began exporting.

According to a Research Analystat RNCOS  , “The import of crude oil hasdeclined in Japan because of lesser demand in the domestic market. Despite that,it is still the third largest consumer of oil in the world after the US andChina. However, the global demand for oil is very strong which has increasedthe export but decline in the domestic market is a cause of worry for thecountry because domestic demand plays the most important role in boosting theeconomy. To cope up with this problem, the government should take some steps,like giving subsidies to refiners.”

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