India's fuel demand up 22 per cent YoY in May
Finance & Business
POSTED BY: Ranjeet Kumar
PUBLISHED: Jun 15, 22
Demand for May was 80,000 barrels more than predicted, owing to higher-than-expected transportation demand
and the government's announcement of a Rs 8 per litre reduction in excise duty on petrol and Rs 6 per litre reduction in excise duty on diesel, which boosted demand.
Diesel, petrol, and other minor products, which increased by 416,000 barrels per day, 282,000 barrels per day
and 161,000 barrels per day, respectively, year over year, drove demand increases.
It expects India's oil consumption to stay strong in the short term unless oil prices are dramatically hiked
which is unlikely at this time due to rising inflation.
The strong refining margins in India have benefited private export-oriented refiners far more than state-owned oil marketing businesses.