NEW DELHI :
India’s gasoline consumption fell for the second month in a row in February to its lowest since September as record-high costs hindered demand restoration.
Petroleum product consumption fell 4.9% to 17.21 million tonnes in February as demand for each petrol and diesel fell, in response to knowledge from the Petroleum Planning and Evaluation Cell (PPAC) of the Ministry of Petroleum & Pure Fuel.
Petrol and diesel costs throughout the nation rose to their highest ranges final month earlier than state-owned gasoline retailers placed on maintain any additional worth improve ostensibly to include political fallout for the ruling get together within the ensuing meeting elections in states like West Bengal.
Diesel, essentially the most used gasoline within the nation, fell 8.5% to six.55 million tonnes whereas petrol consumption was down 6.5% to 2.4 million tonnes.
Naphtha gross sales remained unchanged however the sale of bitumen – used for making roads – was down 11%.
Cooking gasoline LPG gross sales have been up 7.6%
Crude oil suppliers group OPEC’s month-to-month oil report on Thursday forecast a 13.6% bounce in India’s oil demand in 2021 to 4.99 million barrels per day.
India’s oil demand had fallen 10.54% in 2020 to 4.40 million bpd from 4.91 million bpd in 2019.
“The encouraging macroeconomic indicators, along with vital decreases in COVID-19 circumstances throughout the nation, offered a stable basis for the 2021 oil demand outlook in India,” the report mentioned.
The latest optimistic developments in industrial actions will lead to industrial fuels being the spine for oil demand progress in 2021, with a wholesome rebound for transportation fuels offering additional assist, it mentioned including the aviation sector will stay below strain all through 2021 and also will be a significant supply of uncertainty.
“Regardless of some enhancements month-on-month, home flight operations remained greater than 10% decrease than the degrees recorded throughout the identical interval in 2020,” the OPEC report mentioned.
India’s economic system returned to optimistic progress territory within the fourth quarter of 2020 as its actual GDP expanded by 0.4% year-on-year after two-quarters of contraction. This was after provincial and localised lockdowns have been lifted amid a fall within the day by day variety of new COVID-19 circumstances.
Financial progress was primarily pushed by increased client spending throughout the Diwali pageant in mid-November.
In 2020, India’s GDP contracted by 7%, but it surely forecast to develop by 9% in 2021.
“Following the 0.4% progress registered in 4Q20, India’s was one of many few main economies to submit progress within the quarter as lockdowns eased, and this rebound is anticipated to proceed as consumption manufacturing exercise rise,” the OPEC report mentioned.