India’s Fuel Demand Grows At Its Slowest Pace In Five Years
The consumption of retail fuels such as diesel and petrol continued to grow, albeit at a lower rate.
India’s fuel demand in financial year 2018-19 rose at its slowest pace in the last five years as usage of petroleum coke declined.
Fuel consumption in India rose 2.7 percent on a yearly basis to 211.6 million tonnes in the financial year 2018-19, according to data published by the Petroleum Planning and Analysis Cell. That’s the slowest pace since the year ended March 2014.
Consumption growth slowed because demand for pet coke, which contributes 10 percent to India’s fuel mix, fell 20 percent compared to last fiscal. The government banned usage of petroleum coke—a dirtier alternative to coal—in FY19 due to rising pollution levels, besides pushing for cleaner liquefied petroleum gas or LPG as cooking fuel instead of kerosene.
While the consumption of kerosene dropped 10 percent in FY19, its contribution to the overall demand in India remains below 2 percent.
The consumption of auto fuels continued to grow in FY19, albeit at a lower rate. Petrol and diesel consumption grew 8 percent and 3 percent, respectively.