India's oil fuel demand growth slows again

Source: China Chemical Industry News Time: 2020-01-06

Due to the economic recession, India expects its oil consumption to increase at the slowest rate in six years. The Petroleum Planning and Analysis Group of the Ministry of Petroleum said that in the fiscal year ending March 2020, India’s consumption of petroleum products is expected to increase by 1.3% to 216 million tons. This was the lowest level since the demand for petroleum products increased by 0.9% from 2013 to 2014, when the average price of crude oil was above US$100 per barrel.

The slowdown in the growth of consumption of petroleum products reflects the general decline in domestic demand for commodities from cars to houses. India’s economic growth has been at a six-year low. The latest data shows that India’s industrial production contracted for three consecutive months in October 2019, mainly due to energy-intensive industries such as production materials, infrastructure and building materials.

Data from the Public Policy Committee of India (PPAC) shows that the growth rate of Indian diesel consumption is expected to drop to 0.9%, the lowest level in six years. Diesel is the most consumed petroleum fuel in India and the lifeblood of Indian manufacturing, transportation and agriculture.