Home > Crude Oil & Petroleum, Indian Industry News > Indian Industry News: India’s fuel demand seen up 3.8 per cent in 2012, says IEA

Indian Industry News: India’s fuel demand seen up 3.8 per cent in 2012, says IEA

India’s fuel demand may rise 3.8 per cent in 2012 led by diesel and gasoline, the International Energy Agency said, adding a recent retail price hike by Asia’s third-largest oil consumer will not dent demand growth in the short term. IEA, an adviser to 28 industrialised countries, in its July report, forecasts India’s fuel demand to rise 132,000 barrels per day (bpd) to 3.6 million bpd in 2012 despite a likely slowdown in economic growth to 7.8 per cent in that fiscal.

It said India’s fuel demand may rise 3.7 per cent or 124,000 bpd in 2011 to 3.46 million bpd, unchanged from its June estimates, on expectations of strong economic growth of 8.2 per cent. India last month raised prices of diesel, cooking gas and kerosene to soften the blow of high crude oil prices on state-run firms’ finances.

“While the price increases should help offset revenue losses by refiners who have faced rising crude prices, the prices of the affected products remain regulated and the price hikes are likely not enough to significantly dent oil demand growth in the short term,” the Paris based agency said.

IEA expects India’s diesel demand, which accounts for about 40 per cent of the fuel demand, to rise 5.8 per cent in 2011 to 1.37 million bpd this year and 5.5 per cent next year to 1.44 million bpd, it said. Gasoline demand would rise 7.6 per cent to 363,000 bpd in 2011 and 6.7 per cent to 388,000 bpd in 2012. India’s oil ministry has forecast oil-product sales to rise 4.6 per cent in the financial year that began April 1.

IEA also said that the oil demand growth will accelerate next year, led by consumption from emerging economies, contradicting a more conservative outlook from producer club Opec. In its first 2012 forecast in a monthly report, the IEA said demand would grow by 1.47 million barrels per day (bpd) to a hefty 91 million bpd, compared with 2011 demand growth of 1.2 million bpd.

Its growth prediction for next year was slightly lower than a forecast from the United States’ Energy Information Administration but more than the 1.32 million bpd expected by the Opec. Differences between the group and consumer countries widened after Opec in June failed to reach agreement on a Saudi-led proposal to increase output.

Source: Economic Times

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  1. May 28, 2012 at 5:44 am

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