Fuel consumption slowdown shows economy slowing too

New Delhi, Dec 29 (PTI) In a clear sign of slowing
economic activity in the country, India's fuel consumption
grew by just two percent in November and the most used diesel
sales showing moderation for the second month in a row.

Oil product consumption in November was 10.99 million
tons, a tad higher than 10.77 million tons in the same month
last year, according to latest data available from the
Petroleum Ministry.

Diesel sales, which had during the first part of current
fiscal seen a growth rate of 15-16 percent, rose by 8.6
percent to 4.46 million tons in November while demand for
petrol was up 5.9 percent to 914,900 tons.

Increased vehicle movements for electioneering in five
states and power outages that forced use of gensets were
responsible for the over eight per cent growth in diesel
demand, a ministry official said.

Reflecting slowdown in aviation sector, jet fuel
consumption was down 6.5 percent at 371,400 tons. Industrial
fuels naphtha and light diesel oil also recorded negative
growth rates.

Oil product demand in April-November rose 4 percent to
86.6 million tons with diesel consumption rising by 10.7
percent to 33.73 million tons.

Crude oil imports in November rose 7.8 percent to 9.87
million tons, with private refiners accounting for almost
one-third of the inward shipments. Product imports, however,
declined 17.3 percent to 1.35 million tons on lower LPG and
diesel imports.

Fuel exports were also down 9.6 percent to 2.66 million
tons, with diesel being the most shipped product at 1.21
million tons.

Crude oil imports in April-November was up 7.9 percent
at 86.08 million tons while inward shipments of petroleum
products was down 12.3 percent to 13 million tons.

Naphtha was the most imported commodity at 3.4 million
tons but this was 19.7 percent lower than 3.78 million tons
of the industrial fuel imports in April-November last fiscal.

Exports declined 10.2 percent to 23.95 million tons.
Diesel (8.88 million tons), naphtha (4.81 million tons) and
fuel oil (3.87 million tons) were the most shipped products,
the data showed. PTI ANZ
AM