India’s Fuel Demand Grows 4.5 Percent in Feb, First Increase After Two Months of Decline

India’s gas demand grew 4.5 per cent in February from a yr earlier, the primary improve in two months, authorities information confirmed, indicating some restoration within the nation’s industrial exercise during the last month. Consumption of refined fuels, a proxy for oil demand, totalled 18.22 million tonnes in February (roughly 5 million barrels a day), information from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry confirmed on Thursday.

That could be in line with the newest report from the International Energy Agency that stated India’s oil demand would rise by 2.6 per cent this yr to five.13 million barrels per day. Indian demand for gasoline utilized in passenger autos rose in February at its quickest since May final yr, rising about 11.2 per cent from a yr earlier to 2.51 million tonnes. Diesel grew at its quickest in three months, rising 6.Three per cent from a yr earlier to 7.16 million tonnes, the info confirmed.

Diesel is utilized by vehicles and heavy autos for transporting items, and for powering mills and different tools in industrial actions like mining and manufacturing. India’s gas demand may ease in March because the variety of individuals within the nation testing constructive for the coronavirus is rising and the federal government has issued journey advisories, resulting in the cancellation of air tickets and lodges.

India has stated it expects its refined merchandise demand to rebound by 3.eight per cent within the monetary yr starting April 1, monitoring improved financial development, though the federal government estimates have been made in January and don’t keep in mind any affect from the unfold of the coronavirus. Cooking gasoline, or liquefied petroleum gasoline (LPG), gross sales fell 4.Three per cent from a yr earlier to 2.12 million tonnes, and naphtha gross sales rose 6.7 per cent to 1.28 million tonnes. Sales of bitumen, used for making roads, have been up about 1.Four per cent from the identical month final yr, and gas oil use slipped 5.1 per cent.