India has cut its forecast for fuel consumption by about 1% to 155.63 million tonnes in the current fiscal, mirroring slowdown in the economy.
Oil Ministry's Petroleum Planning & Analysis Cell (PPAC) in a mid-term review trimmed forecast for fuel consumption to 155.63 million tonnes in 2012-13 from previously projected 157.07 million tonnes.
It projected a 5.2% rise in fuel demand in the current fiscal over 148.13 million tons of petroleum product consumed in the previous year.
Fuel consumption in 2011-12 had grown by about 5% and PPAC had at the beginning of the fisal projected a growth rate of 6% in 2012-13.
Finance Minister P Chidambaram had earlier this week stated that the economy will grow by 5.7% in current fiscal, down from 6.5% in the previous.
The fuel demand revision, according to PPAC, is mostly on account of almost halving of growth in consumption of cooking gas (LPG) to 5.6%. This was being seen as an immediate fallout of the government decision to cap supply of subsidised LPG.
PPAC said 2012-13 will end with a 16.22 million tonnes of liquefied petroleum gas (LPG) consumption.
Demand for diesel, which accounts for 45% of the fuel consumption in the country, is projected to rise by 8.3% to 70.1 million tonnes. PPAC had previously projected a growth of 5.9%.
PPAC projected a 5.5% growth in petrol demand at 15.82 million tonnes, while kerosene is expected to see a 9.5% drop in consumption to 7.45 million tonnes.
Aviation Turbine Fuel (ATF) too is projected to see a fall in demand of 7.2% at 5.13 million tonnes. Naphtha consumption is however projected to grow by 7.6% to 11.95 million tonnes.
