Saudi Arabia to hold downsized Hajj pilgrimage again

Spanish Market: Oil products
13/06/21

Saudi Arabia will be restricting participation in the Islamic Hajj pilgrimage for the second consecutive year, again allowing only a limited number of citizens and residents from within the country to take part.

This means that the regional transport fuel demand will once again miss out on the boost that the Hajj would normally bring.

Only 60,000 pilgrims between the ages of 18 to 65 will be allowed to perform the Hajj this year, provided they are fully or partially vaccinated and free of other chronic diseases, the ministry of Hajj and Umrah said on 12 June.

The decision was taken in light of the ongoing Covid-19 pandemic and the emergence of new virus strains. The pandemic situation in the kingdom has been fairly stable for a few months now, with the average number of daily new Covid-19 cases standing at 1,195 in June so far, slightly up from 1,067 in May and 912 in April.

Last year Saudi Arabia expected no more than 10,000 pilgrims to perform the Hajj, following similar restrictions imposed by the kingdom to limit the pilgrimage. But in 2019 more than 2.4mn foreign and domestic pilgrims performed Hajj in Saudi Arabia, of which 70pc, or 1.75mn, traveled from abroad, according to Saudi Arabia's general authority of statistics.

Limiting the number of pilgrims traveling from abroad will have a direct negative impact on already depressed jet fuel demand, which otherwise rises during the peak travel summer and religious holiday season. While the kingdom resumed international flights to 41 destination on 17 May, a ban on entry from at least 13 other countries where the Covid-19 situation is still deemed to be a concern, remains in place.

Domestic consumption of jet fuel, including kerosine in Saudi Arabia dropped to an average of around 44,000 b/d last year from 103,000 b/d in 2019, according to latest data from the Joint Organisations Data Initiative (Jodi), the lowest annual level since Jodi began keeping records in 2002.

Gasoline and diesel demand will likely also fail to gain a boost, as normally road vehicles are used to transport pilgrims to the holy sites.

By Ieva Paldaviciute

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