Fuel demand jumps 9.3% in March to 10-month high of 20.91 mn metric tonnes

India's fuel demand in March hit a 10-month high, rising 9.3 per cent from the previous month to 20.91 million metric tons, oil ministry data showed on Monday.

India is the world's third-largest consumer and importer of oil. The data is a proxy for the country's oil demand.

On a yearly basis, March fuel demand was down 3.1 per cent from 21.57 million tons in the same month last year, the Petroleum Planning and Analysis Cell's website showed.

Sales of gasoline, or petrol, rose 10.6 per cent to 3.5 million tons compared with last month's 3.2 million tons, and were 5.7 per cent higher than a year earlier.

 

Diesel consumption rose nearly 10 per cent month-on-month to 8.1 million tons in March.

Cooking gas or liquefied petroleum gas sales increased 4.2 per cent on an annual basis to 2.72 million tons, while naphtha sales fell almost 5 per cent compared with last year to 1.08 million tons.

On a monthly basis, LPG and naphtha sales rose 5.8 per cent and nearly 14 per cent, respectively.

Sales of bitumen, used for making roads, were 18.4 per cent higher, while fuel oil use ticked up by 1.5 per cent in March, in comparison with February.

India's infrastructure output increased 2.9 per cent year-on-year in February, its slowest pace in five months.

India is considering a proposal to scrap import tax on U.S. liquefied natural gas to boost purchases and help cut the trade surplus with Washington, government and industry sources said.

"Trade tensions might have an impact on oil demand growth, but for now I would still expect Indian oil demand to keep rising unless the world shifts into a recession," UBS analyst Giovanni Staunovo said.