India’s annual gas demand grew 0.2 per cent in 2019-20, its worst development charge in over 20 years, dragged down by a hefty 17.eight per cent decline in native consumption in March as steps taken to stop the unfold of COVID-19 dented transport gas gross sales.
Consumption of refined fuels, a proxy for oil demand, totalled 16.08 million tonnes in March, information from the Petroleum Planning and Evaluation Cell (PPAC) of the oil ministry confirmed on Monday.
Falling refined fuels gross sales in March factors to sluggish industrial exercise in Asia’s third largest economic system, which based on some analysts is forecast to develop at 1.5-2 per cent in 2020-21, its slowest tempo in many years.
A Reuters ballot of economists confirmed it’s anticipated to have expanded at its slowest tempo in eight years within the first quarter and would sluggish additional this quarter.
Prime Minister Narendra Modi will deal with the nation on Tuesday, the final day of the present 21-day lockdown, and is extensively anticipated to increase the closure besides the beginning of some important manufacturing items.
Resulting from restrictions on motion and journey advisories, the nation’s consumption of diesel, petrol and aviation turbine declined massively throughout March.
Consumption of diesel, which usually accounts for two-fifths of total refined gas consumption, declined 24.2 per cent in March from a 12 months earlier, its deepest decline since April 1998. PPAC don’t present month-to-month development numbers for earlier than April 1998.
Gross sales of gasoline, or petrol, utilized by vehicles fell by 16.four per cent from a 12 months earlier, its worst slide since March 1999, the information confirmed.
Jet gas consumption declined by 32.four per cent because the lockdown has hit air journey.
Cooking gasoline or liquefied petroleum gasoline (LPG) gross sales rose about 1.9 per cent to 2.31 million tonnes, and naphtha gross sales rose 15.7 per cent to 1.39 million tonnes.
Gross sales of bitumen, used for making roads, dropped about 41 per cent, whereas gas oil use fell 10.three per cent in March.
Hunch in gas demand has already compelled some refiners to halve crude processing and lift immediate exports of refined fuels.