Home Business Economy India’s Petrol Consumption Soaring High

India’s Petrol Consumption Soaring High

(140730) -- SANAA, July 30, 2014 (Xinhua) -- A Yemeni burns tires to protest against the decision of the government to dramatically increase the fuel price in Sanaa, Yemen, on July 30, 2014. The Yemeni government increased the price of petrol from 125 Yemeni riyals (0.58 U.S. dollar) to 200 riyals per litre and disel from 100 riyals to 195 riyals on Wednesday, which sparked mass protests in the capital Sanaa. Angry protesters burned tires and cut many roads in Sanaa. The government has deployed more soldiers to maintain security in the capital. (Xinhua/Mohammed Mohammed) (dzl)

India’s petroleum consumption growth at record high . . . . by Asian Lite News

Strong urban consumption sentiment, reversal of dieselization and lower prices are likely to have caused India’s petroleum products consumption growth to touch a record high during last fiscal, American investment banker Jefferies said on Wednesday.

Total petroleum product consumption growth as reported by the government’s Petroleum Planning and Analysis Cell (PPAC) was at a multi-year high of 10.9 percent in 2015-16, compared to an average growth of 5 percent and a previous high of 7 percent in both 2007 and 2008.

“Strong urban consumption sentiment, reversal of dieselization and lower price are likely to have been factors for strong petrol consumption as it is almost entirely used for personal transportation in two-wheelers and cars,” Jefferies said in a research note.

It said that while diesel growth for the full year was in line with the 10-year median, its growth rate of 9.5 percent in the second half of last fiscal was well above the historical trend.

“Based on our discussion with PPAC, higher demand for both transportation and static equipment for infrastructure projects, poor rainfall leading to higher pump usage and growth of e-commerce leading to retailing of goods movement have been factors contributing to higher diesel consumption, particularly in the fiscal’s second half,” Jefferies said.

“Low crude price has led to higher demand growth of 2.2 percent globally versus the historical average of 1.3 percent, and is likely to have been a factor in India as well,” it added.

Leave your opinion

Notify of