Month-on-month analysis, too, showed robust growth, with consumption up by 256,000 b/d, underlining the economic recovery and increased industrial activities.
India’s oil products demand witnessed an increase of 132,000 barrels per day (b/d)or 2.4% in February compared with the same period last year, S&P Global Commodity Insights reported.
Month-on-month analysis, too, showed robust growth, with consumption up by 256,000 b/d, underlining the economic recovery and increased industrial activities.
The report highlighted that the increase in demand spanned across most oil products, with the exception of fuel oil and a few other minor products. Liquefied Petroleum Gas (LPG) and gasoil/diesel were the front-runners in this growth, primarily driven by heightened household consumption due to the cooler weather conditions in the northern regions and an uptick in diesel usage attributed to improved mobility and industrial activities post-winter.
Looking ahead, S&P Global Commodity Insights anticipates India’s oil demand to escalate by 206,000 b/d on year in 2024, with gasoil and gasoline poised to be the largest contributors to this growth.
Himi Srivastava, senior analyst-South Asia Oil Markets at S&P Global Commodity Insights, shared insights into the diesel consumption patterns, stating, “Diesel consumption in February rose by 2.6% on year and on month by 126,000 b/d as winter fog receded and mobility picked up momentum.”
Srivastava also emphasized the rebound from a dip in demand witnessed in January due to a truck drivers’ strike, projecting a continued uptrend in gasoil demand through the first half of 2024, buoyed by harvesting activities and the upcoming general elections in India.
Furthermore, the aviation sector contributed to the positive trajectory with jet fuel and kerosene demand recording a year-on-year increase of 16,000 b/d in February. This upswing is supported by a 3.1% month-on-month and 4.8% year-on-year increase in flight departures, as per AirNav Radar Box data, signalling a robust recovery in air travel that even surpasses pre-pandemic levels.
Source:financialexpress.com