India’s Fuel Demand Slips: Fuel demand in the country in September was the lowest since November 2021. This information has come out from the figures released by the government. The overall monthly fuel demand declined by 3.6 per cent in September as compared to August. However, the fuel demand remained 8.1 percent higher as compared to September 2021. Phil Flynn, Analyst at Chicago-based Price Futures Group, said that when we talk about declining fuel demand in India, one reason for this is also the seasonal maintenance of refineries. The fuel demand phenomenon is not indicating a slowdown in the economy. With the onset of winter season, we expect fuel demand in India to pick up soon.
Petroleum Planning and Analysis Cell of the Ministry of Oil (PPACAccording to the ) data, a total of 17.18 million tonnes of fuel was consumed in September, which is higher than 15.89 million tonnes in the same period a year ago. Diesel-petrol sales grew 13.4 percent year-on-year to 6.26 million tonnes but saw a decline of 1.4 percent on a monthly basis.
Demand for bitumen, which is used for road use, was 16 per cent higher in September. The demand for cooking gas (LPG) stood at 2.45 million tonnes with an increase of 3.5 percent. At the same time, sales of naphtha oil declined by 6.4 percent to 1.08 million tonnes. The country’s refinery companies are planning to settle periodic deals to supply more and more crude oil so that the imposition of more stringent sanctions on Russia by Western countries may hamper future supplies.
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