Gasoline consumption in India rose to an eight-year excessive in monetary 12 months 2015-16. The spurt was attributed to a fall in average retail costs of petrol and diesel triggered by plunging crude oil prices globally.
“Whole petroleum products consumption elevated at eleven 11% in FY16 after eight years with high development across products (besides kerosene) regardless of largely strong bases in FY15,” mentioned brokerage Motilal Oswal Securities Restricted in a note released last week.
Petrol (gasoline) consumption witnessed a progress of about 15 %, a 17-yr-high, attributable to an approximately 8 p.c discount in common petrol costs that most likely resulted in greater consumption, other than a shift in new cars from diesel to petrol, the brokerage mentioned.
A 14 p.c fall in common retail prices noticed diesel consumption rise to a four-year-excessive of eight percent. A deficit monsoon resulting in increased use of diesel-powered generators and an overall increase in transportation services led to higher diesel consumption, the brokerage added.
The Indian civil aviation sector posted persistently high passenger traffic growth in the course of the 12 months. This, coupled with a fall in aviation turbine gasoline (ATF) prices, led to jet fuel consumption sky-rocketing to a nine-12 months-excessive of 12 p.c.