Fuel demand skyrockets in India
India’s fuel demand rose 10 percent to about 170 million tons in the current fiscal year, according to a recent report released by the oil ministry's Petroleum Planning and Analysis Cell (PPAC).
Indian Oil Corporation’s (IOC) head of refineries Sanjiv Singh added that gasoline demand has been growing in double digits. Growth in other fuels consumption has also been seen.
The subcontinent is now the third largest oil consumer, reports Reuters, and may topple China as the world’s energy demand growth leader.
Indian companies such as IOC, Oil India Ltd, and Bharat PetroResources Ltd. have also signed deals with oil giant Rosneft, proving the country’s rising importance as a buyer.
Its rosy economy, with annual economic growth of 7-8 percent, rising salaries, and cheap credit have brought an increase in brand new and second hand vehicle sales. Hundreds of thousands of Indians buy cars each month to free themselves from the country’s public transport system.
Aside from strong consumer spending, reforms in mining, improvements in infrastructure, and job creation will further augment fuel consumption in the country, according to Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.
PPAC predicts that India’s fuel demand will continue grow for the next fiscal year at the rate of 7.3 percent.
