Autos, manufacturing aid stellar rebound in India’s oil demand

26 Oct 2017   India

India posted the highest growth in demand for oil products in 13 months in September at 9.9% as the effects of some key economic reforms started to fade, while an uptick in manufacturing and robust auto sales boosted consumption of industrial and transport fuels. The year-on-year oil demand growth was the highest since August 2016. Oil demand growth has been moderate after November 2016 when New Delhi demonetized 80% of its currency to curb illegal cash transactions. But analysts said that the after-effects of another key policy reform — the Goods and Services Tax — are still being seen. “Demonetization was an event but GST is a process. I think the after-effects of demonetization for most sectors are over. But as far as GST is concerned, the administrative and compliance challenges are not yet over,” said Dharmakirti Joshi, chief economist at CRISIL, a unit of S&P Global. “The government […]

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