Record prices hit petrol, diesel demand in Sept

NEW DELHI: India's per thirty days diesel consumption fell for the first time in 10 months year-on-year in September, whilst petrol gross sales grew by way of the least in four months as document high pump costs dented demand, executive data showed on Friday.

Lower local gross sales of petrol and diesel curbed enlargement in India's overall fuel demand to 1.1 in step with cent in September, regardless of higher gross sales of liquefied petroleum fuel and jet fuel.

India's fuel consumption, a proxy for oil demand, totalled 16.54 million tonnes in September, a decline of about 1.three in step with cent from August, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.

A sharp fall within the worth of the Indian rupee and soaring oil costs resulted in document high pump costs of diesel and petrol, forcing the government to chop taxes on them and asking shops to chop advertising margins by way of Re 1 a litre.

Diesel gross sales, which account for about 40 p.c of refined fuels used in India, declined by way of 0.eight in step with cent to six.03 million tonnes in September, the information showed.

Growth in gross sales of fuel, widely used for transportation, eased to 4.2 in step with cent to 2.23 million tonnes from the similar month last yr, as demand for passenger vehicles fell five.6 p.c in September from a yr in the past.

"It may have some price impact but we need to analyse that... last month growth in petrol and diesel sales were impacted as (in) September 2017 there was a robust growth," mentioned M Ok Surana, Chairman of Hindustan Petroleum Corp.

Industrial slowdown

Lower consumption of diesel additionally indicates slowing commercial task, as it is used in industries and mining.

India's commercial output in August grew 4.three in step with cent from a yr earlier, in comparison to the downwardly revised 6.five in step with cent year-on-year increase in July.

Although overall monsoon rains were under average, floods in parts of India limited mobility and hit demand from farmers who use diesel-fuelled generators to energy pumps for wells.

"Seasonally it is not a high demand period," Senthil Kumaran, senior oil analyst at FGE, mentioned, adding that the worst is over for Indian fuel patrons in time period of costs as the government may cut taxes additional.

"We see a marginal impact of pricing in September sales but going forward from now to until March we expect the government to continue to take measures to reduce the impact of higher prices through reduction of taxes ahead of elections next year."
Record prices hit petrol, diesel demand in Sept Record prices hit petrol, diesel demand in Sept Reviewed by kailash soni on October 14, 2018 Rating: 5
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