India Oil Demand Shrinks 3rd Month Amid Demonetization Drag

11 Apr 2017   India

Diesel use rises 0.3 percent, gasoline demand up 2.9 percent Consumption in January-March about 3% lower from year earlier India’s oil consumption fell for a third straight month, with the use of bitumen and naphtha declining and diesel demand growth flat, amid the continuing effects of demonetization. Total fuel consumption fell 0.7 percent to 17.36 million tons in March, according to the Oil Ministry’s Petroleum Planning and Analysis Cell. That puts consumption during January-March about 3 percent lower than the same period last year as the economy slows under the impact of Prime Minister Narendra Modi’s decision in November to remove high-denomination currency notes from circulation. “I think the resilience of demand in the face of an incredibly high 2016 base is impressive, especially given the turbulence caused by demonetization,” Virendra Chauhan, an oil analyst at Energy Aspects, said. “Gasoline, diesel and LPG, the key drivers of Indian oil […]

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