India’s Petroleum Products Consumption Growth Robust

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New Delhi, Jan 25 (IANS) The overall petroleum product consumption progress in India from April to December remained sturdy at 9 per cent despite a droop in diesel because the demand in petcoke emerged stronger, a Jefferies report mentioned on Wednesday.

“Overall product consumption development in India has remained sturdy in nine months of FY17 at 9 per cent 12 months-on-yr despite slower diesel growth because of power in lots of other products like petcoke, gasoline, liquefied petroleum gasoline (LPG), aviation turbine gasoline (ATF) and gas oil, the report stated.

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Petroleum product consumption progress has remained robust although it’s down barely from final year’s high of 10.9 per cent. That is despite diesel quantity growth decelerating to three.7 per cent throughout April-December, from 7.5 per cent within the corresponding interval the earlier fiscal, it stated.

According to the report, the 2 issues that stood out in April-December period have been that whereas the petcoke consumption in India overtook gasoline in tonnage phrases, kerosene use was down sharply due to the federal government technique, with optimistic implications for fuel subsidy.

While kerosene consumption had been declining steadily for many years, LPG consumption progress was at a 12-12 months high.

“We imagine this is part of a conscious transfer by the federal government to shift households away from kerosene towards LPG. This also ties in with the upper month-to-month value hikes in kerosene as compared to LPG and news circulation on sharp cuts in kerosene quotas to varied states, the report stated.

“Shift from kerosene to LPG has a number of advantages for the gas subsidy maths. LPG consumers are higher tracked making it a lot easier to implement Direct Benefit Transfer in LPG than in kerosene. Extent of subsidy in LPG is decrease than in kerosene and the latter is extra prone to be used as an adulterant than LPG, it added.

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