Oil Import Bill Estimates Go Awry
Motor spirit consumption during April-July 1996 also grew by 10.2 per cent over the 1995 corresponding period.
While drawing up the oil economy budget for the current year, the government had assumed that the consumption growth of both HSD and motor spirit during the year would not be more than eight per cent over last year's consumption.
With the entire country experiencing exceptionally good monsoon, it was hoped that consumption would dip further as the demand for petroleum products from the agricultural sector would come down considerably.
However, except for seasonal variations in consumption, the demand for both HSD and motor spirit is showing no signs of relenting. On the contrary, it is well above last year's levels.
According to the figures available with the Oil Coordination Committee (OCC), motor spirit demand in April this year was 419 thousand metric tonnes (tmt) (against 358 tmt in April 1995). In May the demand grew to 445 tmt (407 tmt) and was 422 tmt in June (380 tmt), and 396 tmt in July (380 tmt).
This shows that while the growth of consumption in motor spirit in April 1996 over the corresponding month of 1995 was 17.2 per cent, it was 8.8 per cent in May, 11.2 per cent in June and 3.7 per cent in July.
Similarly, HSD consumption in the first four months of 1996 and 1995 was: April - 3,051 tmt (2,643 tmt), May - 2,974 tmt (2,750 tmt), June - 2,842 tmt (2,606 tmt), and July - 2,711 tmt (2,411 tmt).
This implies that HSD consumption growth during April-July 1996 over the corresponding months of the previous year was: April -15.4 per cent, May - 8.1 per cent, June - 9.1 per cent and July - 8.8 per cent.
Overall growth in the consumption of motor spirit and HSD during the period was 10.2 per cent and 11 per cent respectively.
What is surprising is that despite heavy rains all over the country during August, the daily consumption of both motor spirit and HSD exceeds last year's demand.
According to the OCC, the average daily demand for motor spirits in the current month has been 11.7 tmt against 11.6 per cent in August 1995.
The average daily demand for high speed deisel in August 1996 has been 68.7 tmt against 66.7 tmt last year.