Govt cuts FY18 fuel demand growth estimate to 4.5%, slowest in 3 years, as economic slowdown bites

India, the world's third biggest oil consumer, is expected to consume 203.4 million tonnes of refined products in the year to March 2018

Reuters December 27, 2017 09:15:02 IST
Govt cuts FY18 fuel demand growth estimate to 4.5%, slowest in 3 years, as economic slowdown bites

New Delhi: India has cut its annual fuel demand growth estimate to 4.5 percent for 2017/18 from 5.8 percent, government data showed, indicating slower economic activity.

The new forecast puts fuel demand growth at its slowest pace in three years.

Govt cuts FY18 fuel demand growth estimate to 45 slowest in 3 years as economic slowdown bites

Representational image. Reuters

India, the world's third biggest oil consumer, is expected to consume 203.4 million tonnes of refined products in the year to March 2018, data posted on the website of the petroleum ministry's Petroleum Planning and Analysis Cell showed.

Introduction of a new tax regime had dented India's economic growth earlier this year. The country's central bank estimates the economy to grow at 6.7 percent in this fiscal year, its slowest pace in four years.

Gasoline consumption is seen growing at 9.8 percent, higher than the previous year, the data showed, reflecting a likely 9 percent rise in passenger vehicle sales.

Diesel demand is estimated to recover and grow by 5.8 percent, compared to a 1.8 percent rise in the last fiscal year, mainly due to rising construction activity and local manufacturing.

India is promoting use of liquefied petroleum gas, used for cooking, to replace kerosene and that would raise sale of the cleaner fuel.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply