Fuel demand in India dips marginally in June

India's fuel consumption dipped marginally in June as monsoon arrival reduced demand for diesel in agriculture sector.

 

Fuel consumption in June dipped to 13.07 million tonnes from 13.08 million tonnes in the same month a year ago, according to latest data released by the Oil Ministry here.

 

Diesel, the most consumed fuel in the country, saw demand drop by almost 2% to 5.953 million tonnes as monsoon rains reduced demand requirement of the fuel to run irrigation pumps.

 

Petrol sales, however, rose 5.5% to 1.415 million tonnes. LPG consumption dropped to 1.215 million tonnes from 1.295 million tonnes in June 2012.

 

Kerosene demand was down to 594,000 tonnes from 631,000 tonnes last year while ATF (Aviation Turbine Fuel) consumption was up 4% to 439,000 tonnes.

 

The Ministry had at the beginning of the fiscal, projected a 4.1% rise in fuel demand in 2013-14 fiscal, slower than 4.9% in the previous year.

 

Diesel demand is projected to growth by 6.3% to 74.5 million tonnes while petrol was expected to expand by 4.5% to 156.53 million tonnes.

 

India's crude oil imports fell over 7% to 13.759 million tonnes in June as opposed to 14.817 million tonnes a year earlier.

 

Fuel imports declined 12.8% to 959,000 tonnes while exports soared 9.1% to 5.29 million tonnes.

 

The nation paid $10.188 billion for crude oil imports, down marginally from $10.575 billion in June last year. Cumulatively in April-June, India has shelled out $33.89 billion for import of crude oil.

 

Imported crude oil makes up for over 75% of the demand at refineries as domestic output is insufficient.

 

Import of products cost $758 million in June, lower than $881 million in the same period last fiscal. Exports fetched $4.664 billion, a 17% increase over $3.978 billion export revenue in June 2012.