India’s petroleum product demand in December fell by a marginal 0.12 per cent to 18,787 Thousand Tonne (TMT) as compared to the demand in the same month last year, fresh data published by Petroleum Planning and Analysis Cell (PPAC), the oil ministry’s statistical arm, showed.
The demand in December fell after recovering in the previous month. Overall, in the first nine months of the current financial year, the demand rose 1.84 per cent to 160,603 thousand tonne.
Overall slowdown in the economic activity coupled with an erratic rainfall have dented the petroleum products’ demand which is expected to remain below 3 per cent in the current financial year, according to rating agency ICRA.
Within petroleum products, the demand for diesel fell 0.70 per cent in December to 7,337 TMT as compared to 7,389 TMT recorded in the same month a year ago. Overall, in the first nine months of the current fiscal, diesel demand rose 0.76 per cent to 62,737 TMT.
Demand for petrol increased 3.21 per cent to 2,472 TMT in December and 8.42 per cent to 22,850 TMT in the April-December 2019 period.
Demand for bitumen, an indicator of road construction activity, declined 8.40 per cent 567 TMT in December but remained flat in the first nine months of the current financial year. Demand for Liquefied Petroleum Gas (LPG) and Aviation Turbine Fuel (ATF) increased 9 per cent and 2 per cent, respectively, during the month.
The heads of both Indian Oil Corporation and Hindustan Petroleum had recently said petroleum consumption growth in 2019-20 may be lower as compared to previous years as demand took a hit during the first half of the fiscal.Share This