New Delhi — India’s oil products demand rose almost 9% in June on the year to 17.99 million mt, or 4.7 million b/d, the latest provisional data from the Petroleum Planning and Analysis Cell showed, primarily driven by higher consumption of diesel and gasoline.
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Diesel demand rose 7.8% on the year to 7.3 million mt in June, while gasoline demand rose by 15% to 2.4 million mt.
In June, demand for LPG grew by 2.6% on the year while jet fuel recorded a 13% rise.
Analysts said last month’s higher sales of diesel and gasoline despite high global crude prices demonstrated a sustainable consumption level in the world’s third-largest oil consumer.
The higher demand is a reflection of buoyant local consumption for oil and oil products due to the Indian government’s thrust on infrastructure development and surging auto sales.
India’s oil demand is set to grow by 300,000 b/d in 2018, compared with only 120,000 b/d in 2017, according to S&P Global Platts Analytics.
Over January-June, oil products demand rose 6.9% year on year to around 107 million mt, or 4.6 million b/d.
Gasoline demand grew at a double-digit rate, while diesel demand grew by a single digit in the six-month review period.
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