India's fuel demand slips month-on-month in February, rises annually

India's fuel consumption fell to 20.24 million metric tons in February from 21.04 million in January, but gained 5.8 per cent compared with the same period last year. 

Data released by the oil ministry's Petroleum Planning and Analysis Cell (PPAC) on Friday showed sales of gasoline stood at 3.37 million metric tons in February, down 4 per cent from January but up 6.1 per cent from a year earlier. 

Diesel consumption was more than 7 million tons, up 4.3 per cent from a year earlier but down 4.2 per cent month-on-month, while liquefied petroleum gas consumption rose 9.7 per cent from a year earlier to 2.82 million tons. 

Naphtha sales rose about 6.6 per cent year-on-year to 1.01 million tons, while consumption of bitumen, used primarily in road construction, jumped more than 15 per cent from January and was up 10.7 per cent on an annual basis at 0.92 million tons. 

Fuel oil usage stood at 0.53 million tons, rising 11.6 per cent from a year earlier. 

India's state-run Bharat Petroleum made its first-ever purchase of Venezuelan oil, and private refiner HPCL Mittal Energy bought the South American country's crude for the first time in two years, three sources familiar with the trade said last month. 

The two refiners bought a million barrels each of Venezuela's Merey crude grade, the sources said. The heavy oil, purchased through two separate deals, is planned to be co-loaded on a very large crude carrier to save on shipping cost, and will boost India's imports of Venezuelan crude to at least 6 million barrels through April, the sources said. 

Indian refiners have been buying Venezuelan oil to diversify their supply mix as they reduce Russian oil imports, a move that helped New Delhi clinch an interim trade deal with Washington. 

HMEL suspended Russian oil imports in October. 

On Thursday, the US Treasury issued a 30-day waiver allowing India to buy Russian oil currently stuck at sea, following months of US pressure on New Delhi not to purchase Russian barrels.