Italian LPG demand fell to a multi-year low in April, driven by a collapse in autogas consumption that suggests the effect of the Covid-19 pandemic on the autogas market could be greater than expected.
Total LPG demand fell by 40pc year on year to 157,000t, pulled down by a 72pc fall in autogas consumption to 37,000t. This marks the lowest for autogas and for total LPG demand, according to Italian economic ministry records that date to 2002. Autogas demand was 39pc lower than in March, which itself was a 53pc fall from 2019.
Italy is the sixth largest autogas market globally, consuming over 1.6mn t/yr for the past 4 years. Market participants had expected autogas consumption to fall by 20-50pc in Europe, when lockdown measures were first announced in selected regions in the north of Italy began at the end of February. These were extended nationwide on 9 March. Few envisaged the fall could surpass 70pc. Lockdowns are in place in key autogas markets such as Turkey, Poland, Ukraine and Italy.
Autogas demand typically peaks in the summer months, helping to bolster total LPG consumption when heating demands decrease.
Transport diesel was also hit hard by the lockdown measures, and fell by 60pc year on year to 804,000t in April. It got some support from the logistics sector.
Heating demand showed some resistance, falling by just 7.7pc year on year to 120,000t with most of the country quarantined at home making up for milder temperatures.
