Japan's oil product sales in December hit their lowest level in 23 years for the month, government data showed on Friday, as energy demand continues to weaken with a deteriorating economy.
Domestic sales of petroleum products dropped 7.5 percent in December from a year earlier to 19.26 million kilolitres, or about 3.91 million barrels per day, the seventh straight month of year-on-year decline, the Ministry of Economy, Trade and Industry (METI) said.
The December figure was the lowest for the month since December 1985, a METI official said. Sales of oil products have been languishing at two-decade lows since August.
Sales of gasoline, which makes up more than a fifth of the fuel used in Japan, the world's third-largest oil consumer, rose 4.1 percent from a year earlier to 5.29 million kl in December, the first year-on-year rise in eight months, the official said.
Despite the upbeat figures for gasoline last month, sales of gasoline in 2008 fell 4.2 percent to 57.33 million kl.
"With sales of automobiles falling, it's hard to forecast a sharp turnaround in demand for gasoline for the time being," the official said.
The data also showed Japan's domestic sales of oil products in 2008 fell 5.3 percent from the previous year.
Analysts had expected about a 5 percent fall in petroleum product sales. [ID:nSP191906]
Japanese demand has weakened in recent years due to an ageing population and a growing consumer shift towards greener energy.
A deepening recession has exacerbated the situation, with several domestic refiners cutting their crude run plans for this year.
Nippon Oil Corp (5001.T), the nation's biggest oil refiner, plans to refine 12 percent less crude in February than a year earlier, marking the fourth straight month that the company has curbed refining by more than 10 percent. [ID:nT153893]
Data on Friday showed Japan's industrial output fell 9.6 percent in December from November, the biggest drop on record, and fell 11.9 percent in October-December from the previous three months for the fourth straight quarter of decline. [ID:nTKG004266]
Other data showed rising unemployment, sliding household spending and no improvement in the outlook for industry in the world's second-biggest economy, reinforcing expectations of a record economic contraction as the global financial crisis worsens. [ID:nT99694]
Slackening global demand and the yen's recent surge forced Japanese automakers to slash productions.
The operating loss at Toyota Motor Corp (7203.T), the world's No.1 carmaker, for the year to March 31 will likely exceed the firm's latest forecast of 150 billion yen, a company source said on Friday.
