India's August fuel demand lowest in 14 years as floods hinder consumption

India's fuel demand in August fell 6.1 per cent, the most in 14 years, as floods in some parts hindered consumption of diesel and petrol.

Petroleum product consumption at 15.75 mt in August was 6.1 per cent lower than 16.78 mt a year ago, according to the Petroleum Planning and Analysis Cell of the oil ministry.

The drop in demand is most since April 2003. This is the second time this year that the demand has shrunk. In January, the consumption had dropped by 5.9 per cent.

Demand for diesel, the most consumed fuel in the country, shrank 3.7 per cent to 5.9 million tonnes while petrol sale was 0.8 per cent lower at 2.19 million tonnes.

LPG sales rose 11.8 per cent to 2.06 mt while kerosene usage declined by more than 41 per cent to 2,92,000 tonnes.

Naphtha sales fell 7.6 per cent to 1.06 mt, but demand for bitumen, used for making roads, was up 8.5 per cent.