Rains, Unrest Slow India Oil Demand First Time in Two Years

19 Oct 2016   India

Diesel use drops 11.4% y-o-y, first decline since July 2015 Monsoon rains, violence in southern states hurt demand: BPCL India’s oil product demand contracted for the first time in almost two years amid strong monsoon rains and unrest in some provinces. Fuel use during September in the world’s fastest growing consumer fell to 14.6 million tons last month, down 2 percent from a year earlier, according to the oil ministry’s Petroleum Planning & Analysis Cell. That’s the first time demand has fallen year-on-year since October 2014. In addition to seasonal rains that damped demand, violent protests in the southern Indian states of Karnataka and Tamil Nadu over sharing river water disrupted fuel supplies, S. Ramesh, director-marketing at India’s second-largest oil retailer Bharat Petroleum Corp., said in a phone interview. Unrest in the northern state of Jammu and Kashmir also affected demand, he said. “This was an unusual month. There […]

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