INDIA DATA: July oil product demand up 3.3% on year at 17.58 mil mt

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New Delhi —
India’s oil demand in July rose 3.3% year on year to 17.58 million mt, or an average 4.43 million b/d, on higher demand for transportation fuels, the latest provisional data from the Petroleum Planning and Analysis Cell showed.

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The increase in last month’s fuel demand is the highest since February.

The figures showed demand for diesel (gasoil) rose 3.3% to 6.83 million mt, and for gasoline jumped 8.8% to 2.52 million mt.

However, compared with June oil product demand fell 0.5%.

Analysts said demand declined month on month as transport fuel demand began to ease following May’s general election, and as demand fell for diesel (gasoil) used to run pump sets for irrigation purposes ahead of the peak rainy season in July.

diesel (gasoil) demand in July fell 8.3% month on month while gasoline demand fell 4.4%.

Demand for LPG rose 9% year on year as the government’s focus on providing clean cooking fuel to poor households resumed after the elections were over.

LPG demand surged 23.5% in July from the previous month as new cooking gas connections released after the elections picked up.

Demand for jet fuel in July fell 0.7% year on year but rose 1.2% month on month to 674,000 mt.

In the first seven months of the year diesel (gasoil) demand rose 2.8%, gasoline demand jumped 9.8% and LPG demand rose 5.8%.

Overall demand for oil products in the first seven months of the year rose 1.8% year on year, mainly on higher demand for transportation fuels during the general election period.

India’s overall oil products demand growth will be around 220,000 b/d in 2019, compared with growth of 200,000 b/d in 2018, according to calculations by S&P Global Platts Analytics.

— Ratnajyoti Dutta,

— Edited by Jonathan Fox,