A sharp rise in the incidence of coronavirus in China and strict measures announced by the government to contain the pandemic are leading to a significant reduction in fuel demand from the world’s largest oil importer, Bloomberg writes.

Lockdowns in Shanghai and nearby cities, as well as other restrictions on travel within the country, have reduced demand for transportation fuel by 1.2-1.3 million barrels per day, according to consulting firm FGE. About half of that volume is accounted for by jet fuel, the analysts said.

In January-February, before the new COVID-19 wave began, China’s oil demand was about 13.7 million bpd, according to Bloomberg calculations based on official data.

“The complete lockdown in Shanghai and the dire situation in general came as a surprise,” said Mia Geng, an analyst at FGE in Singapore. And even if the lockdown in the country’s largest city is lifted, the likelihood of restrictions in other regions of China poses risks of reducing demand by about 500,000 bpd more, she added.

Shanghai’s two main airports served no more than 10 percent of scheduled flights on Thursday, VariFlight data showed. Meanwhile, April 3-5 domestic travel for the Memorial Day of the Deceased fell 26% year-on-year, according to China’s Ministry of Culture and Tourism.

According to Wood Mackenzie estimates, the coronavirus outbreak in China reduced demand for gasoline and jet fuel in the country by 750 thousand bpd in March, in April the drop will be 600 thousand bpd. Reduced demand may be observed in May, believes analyst Yuwei Pei.