 "India's fuel demand likely to rise 3.3% in 2015-16")
The growth in the demand for diesel, which accounts for more than 40% of refined fuel consumption in India, is set to rise 4.1% to 71.3 mt while that of petrol is expected to grow 7.2% to about 19.7 mt
India’s annual oil products demand is forecast to grow 3.3 per cent in the next financial year as Prime Minister Narendra Modi’s focus on local manufacturing and economic expansion will raise consumption of industrial fuels.
The country is expected to consume 166.9 million tonnes (mt) of refined fuels in 2015-16 versus an estimated 161.6 mt this financial year, according to a forecast by India’s energy data body the Petroleum Planning and Analysis Cell (PPAC).
Indian economy is projected to grow close to 7.4 per cent this financial year to March 31. It grew at 7.5 per cent in December quarter from a year ago. In 2015-16, India’s gross domestic product is estimated to grow at 8-8.5 per cent.
The growth in the demand for diesel, which accounts for more than 40 per cent of refined fuel consumption in India, is set to rise 4.1 per cent to 71.3 mt while that of petrol is expected to grow 7.2 per cent to about 19.7 mt.
Availability of cheaper credit after a second rate cut by Reserve Bank of India in as many months is expected to drive up the sale of vehicles.
India is expected to become the world’s third-largest passenger vehicle market by 2019, from sixth place currently, consultant IHS Automotive estimates.
Demand for refined fuels mainly diesel will also get a boost if global oil prices remain stable at the current level of about $61 a barrel compared to about $115 in June last year.
In October last year, India ended subsidies on diesel sales and since then retail prices of the fuel have been reduced by about 15 per cent.
India’s kerosene demand is forecast to decline 3.7 per cent as the federal government is encouraging use of liquefied petroleum gas, consumption of which is expected to rise 3.5 per cent.
Use of naphtha and fuel oil is projected to fall by 5.3 per cent and 4.9 per cent in the next financial year, the data showed.
PPAC has released fuel consumption data up to January.
India’s annual oil products demand is forecast to grow 3.3 per cent in the next financial year as Prime Minister Narendra Modi’s focus on local manufacturing and economic expansion will raise consumption of industrial fuels.
The country is expected to consume 166.9 million tonnes (mt) of refined fuels in 2015-16 versus an estimated 161.6 mt this financial year, according to a forecast by India’s energy data body the Petroleum Planning and Analysis Cell (PPAC).
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Modi’s ‘Make in India’ campaign to make the country a manufacturing powerhouse, plus a push on infrastructure projects and a likely average monsoon will boost demand for industrial fuels like diesel, bitumen and petroleum coke.
Indian economy is projected to grow close to 7.4 per cent this financial year to March 31. It grew at 7.5 per cent in December quarter from a year ago. In 2015-16, India’s gross domestic product is estimated to grow at 8-8.5 per cent.
The growth in the demand for diesel, which accounts for more than 40 per cent of refined fuel consumption in India, is set to rise 4.1 per cent to 71.3 mt while that of petrol is expected to grow 7.2 per cent to about 19.7 mt.
Availability of cheaper credit after a second rate cut by Reserve Bank of India in as many months is expected to drive up the sale of vehicles.
India is expected to become the world’s third-largest passenger vehicle market by 2019, from sixth place currently, consultant IHS Automotive estimates.
Demand for refined fuels mainly diesel will also get a boost if global oil prices remain stable at the current level of about $61 a barrel compared to about $115 in June last year.
In October last year, India ended subsidies on diesel sales and since then retail prices of the fuel have been reduced by about 15 per cent.
India’s kerosene demand is forecast to decline 3.7 per cent as the federal government is encouraging use of liquefied petroleum gas, consumption of which is expected to rise 3.5 per cent.
Use of naphtha and fuel oil is projected to fall by 5.3 per cent and 4.9 per cent in the next financial year, the data showed.
PPAC has released fuel consumption data up to January.