India's record diesel demand to continue in 2017, growth to slow | Reuters
By Jessica Jaganathan | SINGAPORE SINGAPORE India's diesel demand is expected to rise to record levels again this year as a slew of infrastructure projects boosts use of the transport and industrial fuel, although a government-induced cash shortage will hold growth to its slowest in three years.
By Jessica Jaganathan
SINGAPORE India's diesel demand is expected to rise to record levels again this year as a slew of infrastructure projects boosts use of the transport and industrial fuel, although a government-induced cash shortage will hold growth to its slowest in three years. Increased fuel efficiency, a fall in commercial vehicle sales, and the use of other fuels for power generation are also expected to dent demand growth for diesel, analysts and traders told Reuters. "The first quarter saw delayed effects of demonetisation but I think (diesel demand) should improve as there are a number of projects going on such as road and railways, which should drive diesel demand up," said Tushar Bansal, director of Ivy Global Energy, a Singapore-based consultancy. India has budgeted a record $59 billion for 2017/18 for infrastructure such as ports, roads, railways and power. The world's third largest oil consumer guzzled 6.955 million tonnes of diesel in April, the highest so far this year and near a record of 6.958 million tonnes hit in May 2016, the latest government data showed.
Still, a weak first quarter is expected to hold India's diesel demand growth at 1.6 to 3 percent this year, a gain to 1.63 million to 1.65 million barrels a day, analysts from energy consultancies FGE and Wood Mackenzie said. This is the slowest annual growth for diesel since 2014, down from a rise of more than 5 percent in 2015 and 2016. "The slowdown is a result of the demonetization drive, which dampened economic growth for a few months since its implementation in November last year," said Sri Paravaikkarasu, head of FGE's East of Suez Oil.
Prime Minister Narendra Modi in November declared notes of 500 rupees and 1,000 rupees illegal tender, taking about 86 percent of total currency out of circulation, in a move that hit sales of cars and motorcycles and small businesses. April sales of India's commercial vehicles, which consume mainly diesel, fell 23 percent year-on-year, for instance. Sales of passenger cars and motorcycles, however, mostly powered by gasoline, have started to recover.
Woodmac expects India's diesel growth to moderate at 3.2 percent a year over 2017 to 2025, down from an average annual growth rate of 3.9 percent from 2010 to 2016. "The main reasons for a slowdown lies in increasing fuel efficiency, more substitution (for) oil, primarily diesel, in the power sector and a bearish outlook for diesel cars in India," said Sushant Gupta, research director for Woodmac's Asia-Pacific refining. Still India's diesel demand growth in 2017 accounts for one third of Asia's demand growth for the fuel, he said. "It is a positive story compared with China, where we expect diesel demand to be in slow decline in 2017." (Reporting by Jessica Jaganathan; Editing by Tom Hogue)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son